Welcome to Bankruptcy Guide
Mortgages After Bankruptcy Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Planning to Avoid Bankruptcy
from:In many cases, it is possible to avoid bankruptcy with some major financial planning and whole new attitude towards your standard of living. In other words, you can avoid bankruptcy if you make plans to do so and then stick with those plans. There are plenty of reasons why you would want to take this approach if there is a way to avoid bankruptcy. Bankruptcy is life changing for many years and can make it more difficult to do certain things for up to 10 years including getting credit you need.
Avoiding bankruptcy is not something you can do in a haphazard manner. It requires a serious evaluation of your current financial status, a desire to reduce your debt and a determination to do whatever it takes. Your plans will require some sacrifices and belt tightening, but the rewards can far outweigh the effort required to avoid bankruptcy. Some people attempt to make these life changes on their own, but a bankruptcy attorney can assist you in many ways you may be unaware are possible.
The reason you are feeling as if you are near bankruptcy is because you have too much debt compared to your income. To reverse the process you will have to reduce your debt and maybe increase your income temporarily. Some people get a part-time job for a while in order to earn extra money to pay off debt. But there are many other steps you will need to take which either lower your debt or create revenue in order to pay off debt.
When you meet with a bankruptcy attorney, the first thing you do is complete a financial evaluation form. Sometimes, the attorney will see ways you can restructure your personal finances in order to avoid bankruptcy. For example, you can sell some assets that are not critical to your day-to-day life. These assets may be any of your personal property.
In some cases, you will be advised to sell your home in order to eliminate a large mortgage payment. You can then take the equity and purchase a smaller house or one with a lower payment. You can also use the equity to pay off debt even if it means renting for a while. Obviously, you need to reduce your spending however it is possible. If you have a lot of unsecured debt, it is often possible to negotiate with the credit card companies to get lower interest rates so you are able to actually make progress towards paying off the balances.
A bankruptcy attorney can assist you with negotiating with your creditors. For example, if you have loans it might be possible to restructure them in order to lower the payments. This is true for your car payment also. In other words, your attorney and you will go through each debt determine if there is a way to get your payments in line with your income.
One of the most important steps you will take though is to establish a budget and then develop the discipline to stick with the financial plan. It may hurt to sell some of your assets, but if you are able to avoid bankruptcy the rewards are immeasurable.
Mortgages After Bankruptcy News
News Summary: ResCap seeks bankruptcy protection
WHAT HAPPENED: Residential Capital LLC, Ally Financial's mortgage subsidiary, filed for Chapter 11 bankruptcy protection Monday after years of losses and borrowing to cope with bad mortgages. Ally also ...
Read more...The Lean Years: Filling In Outlines Of Linda McMahon's Oft-Cited Bankruptcy
In her campaign narrative, multimillionaire U.S. Senatecandidate Linda McMahon has often invoked the hardship of losing her home and filing for bankruptcy more than 35 years ago.
Read more...Report: Land records provide insight into Linda McMahon's bankruptcy 35 years ago
The Hartford Courant examines Linda McMahon's 1976 bankruptcy that she references in her campaign narrative. The Courant reports that records and details of the bankruptcy are hard to get a hold of, but "public documents in the municipal vault in West Hartford provide a glimpse into the McMahons' finances before and after the bankruptcy: the home foreclosure, mortgages from a Waterbury bank and ...
Read more...Wife of Jeremy Mayfield files for bankruptcy
WILKESBORO, N.C. (AP) — The wife of former NASCAR driver Jeremy Mayfield has filed for Chapter 7 bankruptcy, which will allow the couple to stay in their home.
Read more...Ally estimates $1.3 billion second quarter loss after ResCap files for bankruptcy
Detroit-based Ally Financial Inc. estimated that it would lose about $1.3 billion during the second quarter as a result of the Chapter 11 bankruptcy of its Residential Capital unit and other mortgage subsidiaries.
Read more...Bankruptcy Aims To Free Ally of Bad Mortgage Assets After Auto Rescue
Ally Financial, which still owes the government about two-thirds of the $17.2 billion in emergency loans it received as part of the General Motors and Chrysler rescues, nudged its residential mortgage subsidiary into Chapter 11 bankruptcy today to shed toxic mortgage-related securities.
Read more...Outside the Box: Unfairness to homeowners blocks recovery
Our legal system permits every kind of property owner to reduce their mortgages, with one exception: homeowners.
Read more...Jeremy Mayfield's wife files Chapter 7
The wife of former NASCAR driver Jeremy Mayfield has filed for Chapter 7 bankruptcy, which will allow the couple to stay in their home in Catawba County.
Read more...