Talk About Bankruptcy

When you are about to lose your home, you don’t care about anything else. It consumes your every thought. The only way you will be able to relax is to get the foreclosure called off so you can go back to enjoying your home and your life. Well, as a last ditch effort there is a method available to stop foreclosure on your home.

Filing for bankruptcy is bad for your credit, but sometimes it can save a home from foreclosure. Under chapter thirteen of the US bankruptcy code, debtors are allowed to submit a plan for repaying their debts. The foreclosure process is halted as soon as you file for chapter thirteen. However, your repayment plan is subject to review by creditors and must be approved by the bankruptcy court.

Before you file for bankruptcy, you will be required to attend a credit counseling session. This can help you determine whether you really need to file for bankruptcy or if your debts can be repaid in some other way. If the credit counseling agency prepares a debt repayment plan for you, it must be submitted to the court along with your bankruptcy filing.

Within fourteen days after you file for chapter thirteen, you must file your repayment plan. This is usually done at the same time as the original filing, but it can be done later if you are not quite ready yet, as long as it is on file with the court within fourteen days.

You will be required to attend a creditor’s meeting, and all of the companies and people you owe money will have a chance to ask you questions. The purpose of this meeting is to give your creditors a chance to object if they do not feel you will be paying as much as you possibly could under the proposed plan.

After the creditor’s meeting has been completed, your repayment plan will be reviewed by the court to make sure that it meets the requirements set forth in the bankruptcy code. It can take up to 45 days for approval, but you have to start making payments according to the terms of the agreement within 30 days.

The downside to using bankruptcy to avoid foreclosure is that sometimes it only postpones it, and then you end up with both a foreclosure and a bankruptcy on your credit. It is often difficult to stick to the repayment plan, and if you fail, you can still lose your home. But before you file chapter thirteen bankruptcy explore all possible options, talk to an experienced loan modification attorney first.

Call janian and associates for a free consultation with a loan modification attorney.

When your considering your debt relief options you may have looked into several ways to cut down debt and boost up your savings.  You may have considered everything from a do it yourself option to debt counseling.

However in this article I’m going to discuss another option to help you get debt free.  In this article I’m going cover three reasons why using an attorney based debt settlement firm might be the way for you to go.

Cutting Principle And Interest Payments

The first thing that a typical debt negotiation company like freedom debt management can do for you is work to cut principle and interest payments.  They do this by working with your creditors and negotiating a lump sum payoff.

The cost do something like this will usually run around a $100 a month plus a monthly fee to handle the monthly transactions.

Credit Negotiations

The next thing a debt settlement attorney can help you do is improve your credit.  They will be able to get a copy of your credit report and look for mistakes that could be fixed to help you improve your score.

However things that are on your report like bankruptcy and foreclosures that have come from mistakes that you have made cannot be erased or changed, only mistakes can be fixed here.

Bankruptcy

Finally, a debt settlement attorney can walk you through the process of bankruptcy such as a chapter 13 or chapter 7.  However bankruptcy should not be looked as a one step fix all plan.  It is something that should be considered very carefully.

The cost of a bankruptcy will usually run around $2000 plus filing fees, and credit counseling fees.  However this is just a rough estimate and fees can depend on a persons situation.

Final Thoughts…

Of the options I have given you take the time to research each and everyone before you make a decision. Making a bad financial choice could take you a second to destroy everything you’ve worked for and a lifetime to rebuild.

Those who are thinking about filing for bankruptcy in the state of Michigan might be wondering what they can expect out of the process. While bankruptcy is not a cure-all for financial problems, it is sometimes the best option. Here is some handy information about how one qualifies for and goes about filing for bankruptcy.

Firstly, it’s important to recognize that not all debts will be wiped out through this process. In Michigan, some debts will remain afterward, including taxes, criminal and traffic fines, back child support, most student loans and anything not specifically on the list of debts to be discharged.

Also, credit counseling is mandated by state law before filing for bankruptcy. Debtors must either contact creditors to obtain a workable payment plan or seek a debt consolidation loan within six months prior to filing. After the documents are filed, completing a financial management course is also required.

It’s important to understand the differences between the two bankruptcy types. Chapter 7, the discharging of debt while keeping a home or property not in default, and Chapter 13, a repayment plan that usually allows the debtor to keep a home, automobile and certain other property even though the loans for such properties are in default.

Michigan bankruptcy filings require extensive and often complex paperwork, including a two page petition and a list of all the debts to be discharged and property to be excluded. Deeds or titles of property owned and verification of income, expenses and financial transactions for two years prior to filing are also needed. The fee for Chapter 7 filings is $299, while Chapter 13 is $274.

Fortunately, once the paperwork is filed, the harassing phone calls from creditors can be stopped. In fact, creditors are required by law to cease contact once advised of the bankruptcy, but the court may not inform them for several weeks. To speed along this process and cease the calls, debtors should let creditors know of the filing right away and supply a case number.

The proceeding itself consists of a short meeting (called a 341 meeting) with a bankruptcy trustee. This individual may ask some questions in regards to financial status to clarify matters. The debtor is sworn under oath to answer. The debtors’ attorney and creditors can also attend this meeting.

Those considering this option will be relieved to know that bankruptcies don’t end up in court unless a debt or its discharge is disputed. Creditors have 60 days after the 341 meeting to challenge any debts included. Should there be no dispute, the process is generally finalized in three to six months.

Since there are so many steps involved in filing a Michigan bankruptcy, it is recommended that those considering this debt relief option contact a local attorney that specializes in bankruptcies for further assistance. The right attorney can be an invaluable asset, protecting your property and your interests to the full extent of the law during an emotional and difficult time.

If you’re thinking about filing for bankruptcy in the Detroit area, contact Michigan bankruptcy attorney A Better Way Bankruptcy. With nearly three decades of collective experience, their friendly, helpful and compassionate attorneys and professionals can help you obtain relief from debts, stop calls from creditors and get the fresh start you need.