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Posts tagged "Foreclosure"

Chapter 13 in McKinney, Texas

Chapter 13 bankruptcy has helped many McKinney citizens save their homes when they thought all hope was lost.  The benefit of a Chapter 13 bankruptcy is that even when you do not have a lump sum of money to become current on your mortgage, Chapter 13 can buy you five years (60 months) to pay back the arrears.  Of course, you still have to make your regular monthly payments, but the arrears do not have to be found immediately. 

Allen, Texas Bankruptcy

Sometimes people fall on hard times.  Death, divorce, loss of job, reduction in income can all be reasons that citizens are forced into debt.  Unfortunately, sometimes people fall behind on their homes and are facing foreclosure or are behind on their cars and are in danger of repossession.  

Stop Foreclosure

Facing a foreclosure can be excruciatingly painful.  You may have tried a modification of your loan under the Obama Plan, or you may just have lost a job.  Possibly your wife got sick and you just did not have the ability to take care of her and the house...so you made the choice you had to.  Now the bank is following through with foreclosure proceedings.  Many time clients come to our office and they are three months behind.  They may have a house payment of $2,000 each month.  That means that they are behind $6,000 and they have been told by the bank that unless they come up with that payment, the foreclosure sale will go through on the first Tuesday of the next month.

Mortgage Modification Program Dropouts Outpace New Participants

Despite an increase in the number of participants seeking assistance from the federal foreclosure prevention effort, the Home Affordable Modification Program (HAMP), borrowers continue to drop out of the program more rapidly than new participants join.

A Side Effect of Debt Hardship -- Mental Health Problems

The goal of bankruptcy is to provide a fresh start to financially burdened Americans. The problem is that the struggles leading up to the decision to consult with a lawyer on bankruptcy options often cause significant stress, mental anguish and tension.

Bankruptcy Relief

Filing for protection under the bankruptcy code can provide debtors with a great deal of relief and a fresh financial start.  A Chapter 7 bankruptcy is available for debtors who pass the Means Test.  Most people do actually pass the Means Texas, even in Collin County Texas.  However, the Means Test is a two part test.  Most high income earners fail the first part of the Means Test in Collin County and other North Texas Counties.  The first part of the test compares what most families of the debtor's size make in Texas.  Most people make less than families do in North Texas.  However, there is a second part of the test.  The second part of the test compares your housing, utilities, and transportation guidelines to what the IRS says is normal for a family of your size.  Most people in Collin, Denton, Dallas, and Grayson Counties pass the second part of the Means Test.

Loan Modification Problems

Over the last two years, there have been promises from banks to try to modify the home loans of Americans to make it more affordable for them to remain in their home.  The basic idea was that the debtor had to send in some documentation to be reviewed and then they would be advised if they qualified for the loan modification program in a few weeks.

Credit After Bankruptcy

In these times of financial hardship more and more average Americans are looking for the protection and relief found from bankruptcy. Most don't want to file; most didn't ever think they would be in this position; all are worried about their future after they file bankruptcy. They want to know how their life will change after they file. Will they now have the ability to obtain new credit, or will this be a permanent black mark on their credit history?

Chapter 13 Bankruptcy

Why would someone file a Chapter 13 Bankruptcy?

There are a number of reasons.  First, if you are behind on your mortgage payment, then a Chapter 13 can help you get current.  A "Chapter 13 Plan" is just like a 5 year note to get you caught up on your notes on the assets that you want to keep.  This "Plan" is just like a 60 month note.

If you have a $2,000 a month house payment and you are 3 months behind on your house, the mortgage company is obviously going to want you to pay them $6,000 to get caught up or they are going to foreclose on the property.  Well, you may not have $6,000 in your pocket since you are going through financial problems.  If you don't want to lose your house, then you need to file a Chapter 13.  That way, you can make your normal monthly payments plus pay back that $6,000 over 60 months (about $100 a month).

Another reason you might file a 13 is because you are facing repossession of a vehicle.  Chapter 13 can prevent that.  

Also, if you have a large IRS obligation then the penalties and interest the IRS is charging you will cease upon the filing of the Chapter 13 Plan and you can pay your taxes back at 0%.

The overwhelming majority of our Chapter 13 clients pay back nothing to the unsecured creditors!

Financial Crossroads

Whenever you are in trouble with credit card debt, a foreclosure, a repossession, the IRS, or even when relationship troubles start raring their ugly heads because of the financial quicksand you are being pulled towards...stop what you are doing and get professional help.

That professional help should be from an experienced attorney, not a company which you might question a potential conflict between you and your creditors' interests.  It should also come from an experienced attorney who will charge you a very affordable fee for excellent personal service and legal representation.

If you are facing a financial problem, why would you seek the advice of a "document preparer?"  You should seek advice from an experienced litigator who knows what it looks and smells like in the courtroom.  Feel free to call us for a free initial consultation.  Do not squander your savings or financial future.

We can help you. 
 

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