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After you review this information, don't forget to
contact us for a FREE
consultation.
I receive calls on a daily basis about one’s impending
mortgage foreclosure. Often, the client is severely behind in their
payments and have been unsuccessful in refinancing at a lower rate.
Before throwing in the towel, it may be very helpful to talk to me
about your options. Filing for bankruptcy may not be your only choice.
Sometimes it may be worthwhile to challenge any foreclosure actions,
especially in light of the many changes that the mortgage companies have
experienced. Also, do the foreclosure complaints have the correct
facts? Have the foreclosure proceedings been followed as required by
law? It is important to take a close look at every case.
CHAPTER 7 Vs. CHAPTER 13
Often a client wants to know the difference between a
Chapter 7 and a Chapter 13 Bankruptcy. In a Chapter 7 Bankruptcy, debts
which are not secured by property such as credit cards, medical bills,
or personal loans, can be eliminated upon the filing of this type of
bankruptcy. Certain income guidelines must be met and the ability to
keep one’s house or other property is often protected, but this issue
needs evaluated on a case by case basis. Filing a Chapter 13 is
recommended when either your income is too high or you have assets which
exceed the allowable exemptions.
COLLECTION ACTIVITY/FORECLOSURES
Once
a bankruptcy petition is actually filed, then any collection activity
and/or hearings to collect a debt are stopped immediately and the
bankruptcy laws prohibit creditors from continuing any further activity,
unless the court permits.
STUDENT LOANS/TAX DEBTS/HOME MORTGAGE
The bankruptcy court may allow a mortgage company
to proceed with foreclosure activities. However, if you intend to keep
your home and your payments are brought to a current status, you may
exempt (or keep) this asset. It does depend on the amount of equity in
your home.
Tax debt and student loans are
normally not dischargeable unless extreme undue hardships exists.
However, judgments or liens currently on record may be avoided once a
bankruptcy is filed. This is a separate proceeding.
PENSION
PLANS/IRAS
Other exempt property protected by the
bankruptcy laws are pension plans, individual retirement accounts,
profit sharing plans, and so forth.
The
bankruptcy laws were intended to give individuals a fresh start and
companies an ability to reorganize and get back on the path of business
success. The bankruptcy filing does remain on your credit report for up
to ten (10) years. However, lending institutions may see you as an okay
risk because you have eliminated a majority of your debt.
So many advertisers want you to do a debt reduction
program. Keep in mind that these companies do collect fees for their
service, which can be significant, and some amount of debt remains to be
paid. All of which continues to impact negatively on your credit
report. A consultation with a bankruptcy attorney to evaluate this
strategy is a must to determine if this is right for you.
In summary, I have tried to give you information to
help you navigate through this stressful time. I know that most of
the time these situations exist because of a loss of job, medical
problems, divorce, or a combination of the three. Remember, you
can and will get through this, and I would like to help you.
DO NOT WORRY. If you file for bankruptcy, it will not be listed in the
newspaper
Please call for a FREE consultation.
Contact us today!
Sincerely, Maureen Kroll Attorney at Law
PRINT THIS PAGE AND RECEIVE $100.00 OFF THE BANKRUPTCY FILING.
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Service Area:
Attorney Maureen Kroll provides
services in Westmoreland County, PA, including the communities of
Greensburg, Irwin, Jeannette, Ligonier, Mt. Pleasant, North Huntingdon,
Latrobe, and Scottdale. If you are in need of an injury attorney,
help with Social Security Disability, a divorce lawyer with experience
in child custody, or help filing bankruptcy, please
contact Attorney Maureen Kroll today.
Maureen's areas of concentration also include wills and estates and
elder law. |
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