Unfortunately, the paralysis that can result from being faced with foreclosure is often a homeowner's worst enemy. While a threat of foreclosure does not mean that it will actually happen, it is important for the homeowner to act quickly. There are several options,, some of which can save a person's home and possibly even reduce monthly payments. There is usually a time limit, however, which is why homeowners should seek assistance as soon as they start to have trouble making payments.
]]> The U.S. Department of Housing and Urban Development credentials housing counselors around the country. A housing counselor can offer information to homeowners about foreclosure avoidance options. There are several programs available, including seeking a mortgage modification or arranging a short sale.Another option is filing for personal bankruptcy. Depending on the value of the home and the homeowner's income, Chapter 13 bankruptcy may be a way for filers to save their homes and reduce their overall debt. Someone who wishes to investigate this particular form of debt relief may benefit from speaking with an experienced attorney in order to learn more about the process and its attendant eligibility and other requirements. An attorney could also suggest other strategies for saving the home or selling it, depending on what is in the client's best interest.
]]>A Chapter 7 bankruptcy can remain on someone's credit report for up to 10 years. Bankruptcy immediately lowers a credit score by possibly hundreds of points. How much damage is done to a credit score depends on how high it was before the bankruptcy. Generally, the higher a person's credit score is, the bigger the hit it will take when they file for bankruptcy. Therefore, even people with a high credit score can lose enough points to give them a below average score. Eventually, their credit can begin to rebound, but they will need to demonstrate an ability to pay on time by obtaining a loan or getting a credit card. When a low credit score makes that difficult or impossible, a secured credit card is often a viable solution.
]]> Additionally, people who are beginning the process of rebuilding their credit may benefit from checking their credit report for errors. All debt discharged by a bankruptcy should be shown with a zero balance, and if 10 years has passed, the bankruptcy itself should no longer be on the report. If it is or if there are any errors, it can be disputed by contacting the credit reporting bureaus.A Chapter 7 bankruptcy discharges most unsecured debt such as credit cards and medical bills, though other types of obligations remain intact. Filing also puts at least a temporary halt to collection activities and harassment from creditors. There are a variety of eligibility and other requirements that an attorney can outline.
]]>According to an ABI news release, 9,208 businesses filed for bankruptcy between January and March 2016. There were 7,438 commercial filings during the first quarter of 2015. Experts say that this surge reflects instability in the energy and retail sectors. The data also reveals a sharp increase in the number of individuals filing for Chapter 11 bankruptcy.
]]> However, personal bankruptcy filings, which have declined for 22 consecutive quarters, continue to fall. The 186,357 personal bankruptcies filed during the first quarter of 2016 represent a 6 percent fall from the 198,413 first quarter fillings in 2015, but bankruptcies surged from 64,686 in February to 78,322 in March. While South Carolina was not one of the states with the highest number of bankruptcy filings during this period, neighboring Georgia was one of the top three.Consumers who are struggling to make ends meet often fail to pursue the debt relief options available to them due to misconceptions and myths. Attorneys may clear up these misunderstandings and explain the advantages and drawbacks of options such as credit counseling, debt settlement and debt consolidation as well as the merits of Chapter 7 and Chapter 13 bankruptcy filings.
]]>A report from the Department of Education reveals that only 8,800 former students of the for-profit educator have seen their loans discharged. Corinthian Colleges had more than 70,000 students enrolled when it cancelled all classes in 2014 and as many as 350,000 in 2010. These numbers place a great burden on the DOE, and student advocates are calling for student debt relief rules to be relaxed. Students are currently required to apply for relief individually and complete copious amounts of paperwork.
]]> Lawsuits filed by the attorneys general of several states could result in Corinthian being ordered to pay billions in damages, but these would be symbolic victories only as the company has few assets. Student groups welcomed the news that investigations have revealed widespread fraud, and they point out that some other for-profit colleges engage in behavior that is not entirely dissimilar. With the fraud now acknowledged by the DOE, advocates are hoping that the agency will cease all collection efforts on loans that the former students have incurred.While student loan debt cannot usually be discharged in a Chapter 7 bankruptcy, there are some exceptions to this rule. Experienced attorneys may suggest including student loan debt in a bankruptcy filing if making the required payments would cause undue hardship to the debtor.
]]>The man said that because he received the earnings after his original filing, they did not count as part of the estate. After the bankruptcy court sided with the creditor, the man filed an appeal but the decision was affirmed. However, at least one law professor says the district court was wrong to uphold the ruling of the bankruptcy court.
]]> The case is a complex one, but the court based its rulings on a 2005 addition to the Bankruptcy Code that states that when a case is converted from a Chapter 13 to a Chapter 7, a debtor's earnings after filing are not considered part of the bankruptcy estate. The district court ruled that the fact that Chapter 11 and 12 bankruptcies were not mentioned meant they were excluded. The law professor feels it was an oversight that the issue was not clarified in 2005.Filing for bankruptcy can be a complex process even if a person does not convert from one type to another, and it can be easy to make small errors that snowball along the way. An attorney might be able to assist in putting together documentation and making sure that information is correct and filed in a timely manner.
]]>In addition to running out of savings, those who are unable to pay the bills may be forced to declare bankruptcy. This could have a significant impact on their credit scores, which may make it hard to buy a home or get other types of financing. Those who have been hit by large medical debts have also had to significantly alter their lifestyle to cope.
]]> For some, it isn't possible to provide even the basic necessities such as food or housing. One elderly Florida woman says that she had to give up going out to lunch with friends or doing anything that involved spending money because of a large medical debt. After moving to the state, she found out that a specialist didn't take her insurance, which led to massive out-of-pocket expenses to cover.Those who have large medical or other unsecured debts may wish to file for Chapter 7 bankruptcy. Although it will have an initial credit score impact, filing may eliminate some or all debts in a matter of weeks or months and eliminate collection calls and letters while the case is ongoing. Once the debts have been discharged, debtors are no longer obligated to pay them back. An attorney can explain the filing process and the eligibility requirements associated with this chapter.
]]>Even if the refund is not enough to pay off the total credit card debt, people can still use it to pay off part of the balance. A good strategy is to pay toward the card that has the highest interest rate. It might also be possible to move all debts to one card with the lowest interest rate.
]]> Another important component to paying down a debt more quickly is making more than the minimum payments each month. Budgeting may help people find areas where they can use more money toward paying off a debt. Once credit card debt is finally paid down, people should aim to pay off their credit cards monthly. Companies can raise interest rates at any time and may do so after just one missed payment.Unfortunately, for some people, paying off credit card debt is simply not feasible. Often, credit card debts are not due to a failure in budgeting or irresponsibility but because of unavoidable circumstances such as illness, job loss or divorce. People who are overwhelmed by these types of obligations may want to seek the advice and counsel of an attorney who can discuss options up to and including bankruptcy.
]]>Absent this, a creditor may believe that a debtor has the means to repay the debt and will ask for full payment of an outstanding balance. However, for those who think that a debt settlement is in their best interest, they have three options to go about getting one. Two common options include working with a debt settlement company or talking directly to creditors in an effort to work out alternate payment terms.
]]> The third option involves having the assistance of a lawyer who may charge a flat fee for services rendered or a percentage of any debt reduced. For those who are attempting to get a debt settlement on their own, it may be best to offer a lump sum payment as that guarantees creditors some money upfront as opposed to waiting for payments. Money may be accumulated through a second job or getting a loan from family members or friends.Those who are looking for debt relief may wish to file for personal bankruptcy under Chapter 7. Doing so may stop harassing creditor phone calls, put a temporary halt to a foreclosure and end up with some unsecured debts being discharged. There are a variety of eligibility and other requirements associated with this chapter that an experienced attorney can outline.
]]>Three out of every eight households in the country have credit card debt, with a mean of $5,700 being owed. The greater the income of a household, the larger the credit card debt is likely to be. However, the exception to this is that households with zero or negative worth carry, on average, the highest amount of debt.
]]> There are numerous incentives that make credit cards attractive, such a year with no interest or cash back rewards. Still, it is very easy for people to get in over their head if they are not paying attention to their debt to income ratio and ensuring that they are making regular payments above the minimum required.Although credit cards may be easy to obtain for many people, getting out of credit card debt tends to be far more difficult. For some people, even working extra hours or cutting down on expenses is not enough to get them out of debt. In these cases, filing for bankruptcy may be an alternative The two primary forms of consumer bankruptcy are Chapter 7 and Chapter 13, and an attorney can outline the differences as well as the particular eligibility requirements.
]]>In addition to the woman, 50 Cent also owes a mortgage lender and a business partner money. Attorneys for the rapper say that the pictures in questions cannot be used against him. They further added that Jackson is an entertainer who is trying to promote a brand and is not intentionally hiding assets from creditors. Despite making a statement, 50 Cent's attorneys did not respond specifically to the judge's ruling.
]]> Those who are interested in debt relief or reorganizing their personal finances may wish to talk to a personal bankruptcy attorney. An attorney may be able to explain the benefits of such a move as well as inform a debtor as to his or her rights and responsibilities while the case is ongoing.Debtors are often granted an automatic stay against creditor contact after filing for protection. Under Chapter 7, many unsecured debts are discharged within a few months of filing after the debtor's non-exempt assets have been liquidated and the proceeds used to pay off credits. Once debts are discharged, creditors may not take any action to collect them unless a debtor agrees to pay them voluntarily. If a creditor does take action in an effort to collect a discharged debt, the debtor may ask a judge to reopen the case.
]]>Although a savings account is often used for emergency needs, some people could benefit if they used a portion of it to pay down their debts. However, funds from retirement savings accounts should not be used for this purpose, as this could incur penalties and taxes.
]]> There is also the option called a temporary hardship status. This option is for those suffering with a serious, temporary hardship, such as a natural catastrophe. The creditor may be willing to work out a payment plan under these circumstances. Liquidation is a further solution for those wishing to pay down their debts. For example, trading a vehicle for a more affordable one could be beneficial to one's credit profile and selling unwanted items may bring in extra income to help pay down debts. For those who have several loans that carry high interest rates, a consolidation loan may help. By combining several debts, such a loan allows a person to focus on one debt while charging lower interest rates than credit card companies.For many people who have overwhelming debts, filing for personal bankruptcy may be a viable option for them. An attorney who has experience with these matters can outline the requirements of Chapter 7 and Chapter 13, which are the two principal forms used by consumer debtors.
Source:WKOW, "Understanding options to get out of debt and the impacts on credit profiles", Andrew Housser, Feb. 8, 2016
]]>Those who want to transfer their debt to a new credit card can transfer as many existing balances as they want. The only requirement is that the sum of those balances do not exceed the transfer limit granted by the credit card issuer. Furthermore, individuals may not transfer a balance to another card offered by the same company.
]]> In the event that the balance isn't high enough to pay off all existing debt balances, it may be possible to ask for a personal loan. Homeowners may also be able to secure a home equity line of credit to help pay down debt at a lower interest rate. Those who are thinking about applying for zero percent interest credit card should understand that applying for a card means a hard inquiry on their credit reports. This could temporarily lower their credit scores.Those who are looking to get rid of credit card debt may wish to opt for bankruptcy. Most unsecured debt may be eliminated through bankruptcy, and individuals may also be entitled to an automatic stay from creditor contact. An attorney can help determine what type of bankruptcy the client may be eligible for.
]]>One of the most important factors is making payments on time. Over half of all bankruptcies are filed when there are no late payments on record. Many people in this situation will see their credit score drop, but over time, making payments on time can help improve a person's credit score.
]]> When re-establishing credit, most people will find that their credit limits have dramatically diminished after a Chapter 7 bankruptcy and that their accounts have been closed. It is important for anyone trying to build their credit rating back up to only use about 50 percent or less of their available credit and to avoid opening more accounts than they need. Opening too many accounts at once can cause a drop in a person's credit score because the age of the accounts matters.The types of credit accounts a person has can affect credit scores, and a person who has just filed for bankrupcty may only have secured debts. A person who has just filed for bankruptcy may consider applying for secured credit cards, which can build back their installment or revolving credit.
A Chapter 7 bankruptcy is a way for many people to obtain debt relief. Some people may actually find that their credit score has improved after filing, while others may need to take careful steps to improve their credit score. People who are considering such a step may wish to speak to an attorney about whether they qualify under Chapter 7, whether or not they can keep their property and how the bankruptcy may affect their credit score.
]]>Spelling's husband wants her to to file for bankruptcy. According to a source who knows Spelling, she refuses to consider the option. Spelling has a substantial collection of clothing and memorabilia in storage, and a bankruptcy could force a liquidation of her non-exempt assets. The size of the collection requires high storage fees which exacerbate the financial pressure on her.
]]> Rumors of money troubles are nothing new for the actress and mother of four young children. A period of hospitalization for painful burns on her arms kept her from working during much of 2015. At that time, she had no income and her credit card debts continued to pile up.Many reasons such as unemployment, medical emergencies or a divorce could cause someone to fall behind on bills. Personal bankruptcy could offer a way to restructure payments or have debts discharged by a court, but those who are in this type of a position might want to first meet with an attorney to learn about their available options. In some cases, there could be other alternative forms of debt relief that could be pursued and which would not result in the loss of assets.
Source: International Business Times, "Is Tori Spelling Bankrupt? Dean McDermott Reportedly Wants Her To File Chapter 7 Or 13, Source Says", Maria Vultaggio, Jan. 21, 2016
]]>The company had revenues of $1.1 million over the last three years. The company reported that the assets held by it totaled $5.2 million with debts owed totaling $23.3 million. The company placed enclosed kiosks in various retail locations. People could go into the HealthSpot kiosks and speak privately with remote doctors in real time. The kiosks also had certain medical devices, like weight scales, blood pressure cuffs and others so doctors could get needed baseline information about the patients.
]]> Of the liabilities Healthspot has, $10 million is owed to Cox Communications and $6 million is owed to Xerox. With Chapter 7 bankruptcy, the company will be able to settle its debts for much less than the balance if the discharge is approved by the bankruptcy court.Chapter 7 bankruptcy is often employed by individuals as well. When a person files a Chapter 7 bankruptcy petition, the court issues an automatic stay which enjoins creditors from engaging in further collections activities. People are able to exempt certain categories of property from inclusion in the bankruptcy estate, meaning they will not have to liquidate everything. At the completion of the process, most types of unsecured debts, such as credit card and medical debt, will be discharged. This can help give a person a fresh financial start so they can move forward. After a debt is discharged, a debtor will no longer be required to pay, and the creditor will not be able to try to collect the amount owed.
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