Since the financial markets bolted down in 2008, it seems that nothing is really getting much better. Unemployment is staying right around 10% and the funny thing about that is the way it's reported is that it only counts the people that are receiving unemployment benefits. If you consider all the independent contractors, realtors, loan brokers and even those that have exhausted their benefits and still don't have a job, that number would probably be double. Because of this, bankruptcy and foreclosure rates continue to skyrocket. After a record 2010, the numbers have begun to flatten out that many economists are predicting that this is the calm before the storm. Many are expecting 2012 to have a tidal wave of those filing bankruptcy and foreclosures.
Bankruptcy Attorney Columbia Sc, Maryland Bankruptcy Lawyer, Bankruptcy Attorney Oklahoma City,
Back in the heyday, because of the rise in property values, many Americans either refinance their home or took out a second mortgage exhausting their equity. Now that the real estate market has virtually collapsed people are underwater on their mortgages and are contemplating what to do to get out. Those who have been foreclosed on and have a second mortgage don't realize that just because they surrendered the property back to the bank the second trust deed holders many times pursue unsecured claims against the debtor after the foreclosure is done. Many homeowners don't realize that they might be sitting on a time bomb especially if they have any other property that could be attached.
Usually, if the debtor is pursuing a bankruptcy filing the lender might sell the debt to a collection company that will use unscrupulous tactics to harass the debtor. If the lender doesn't sell the debt they might choose to file form 1099C with the IRS so that debtor will have tax problems with the amount of the deficiency.
Depending on the debtor's situation, a homeowner that is upside down and has other assets to protect should consider a bankruptcy to stop the creditor's shenanigans. A bankruptcy attorney would be able to discuss the options with the debtor and hopefully come up with a good resolve. The debtor could either choose to file Chapter 7 or Chapter 13 bankruptcy, but should be done prior to the foreclosure sale. A Chapter 7 bankruptcy is best for a debtor that doesn't have a large amount of other assets to protect and just wants to wipe out any future liability. On the other hand, the individual can file Chapter 13 bankruptcy and propose a plan of reorganization which includes the surrender of the house to the first and second trust deed holders. This works well for debtor that wants to protect their assets, while avoiding any tax liability.
If the debtor has a substantial income they can even offer 100% repayment plan in the Chapter 13 bankruptcy. This is good for someone that doesn't have a large amount of unsecured debt and most of their debt is with the underwater property that they want to surrender. When it comes to foreclosure, Chapter 13 bankruptcy is a very powerful tool to use. The Chapter 13 can be complicated and should be done with the help of a bankruptcy attorney. There are many lawyers that specialize in Chapter 13 and foreclosure.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Denver Bankruptcy Lawyer
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment