Mortgage Problems? Check this out!
To combat the issue of rising foreclosure, Congress recently enacted HOPE for Homeowners. This program is designed to help homeowners who are at least three payments behind on their mortgage but have not filed for bankruptcy.
If you qualify, the program extends the terms of the loan, meaning you will be paying a lot more interest over the term of the loan but will have lower monthly payments. This plan helps the taxpayer by keeping the monthly payments lower so that hopefully the taxpayer will be able to continue to make the payments and avoid foreclosure. Also, the extended term of the loan does increase the interest payments, however, that interest can be deducted from the taxpayer’s federal income tax.
As long as the taxpayer isn’t trying to move anytime soon this sounds like a great alternative. However, for taxpayers who might be moving in the next few years, this option means that you will likely be trying to sell your house for less than your mortgage. Because the program extends the term of the loan, taxpayers are paying less each month on the balance of the loan and instead a large chunk goes to interest. Thus, due to the lower housing values if you try to sell in the next few years, your mortgage will be more than the value of your house.
It is great that Congress is coming up with programs to help prevent foreclose, but this plan won’t fit everyone’s needs and you need to be aware of the limitations when considering whether it is right for you.
Tradeoffs: Beware What You Wish For
6 months ago, we were all griping about the high prices of gas and how that was causing inflation. Now we are griping about everything else. However, 6 months ago at least we had more jobs. Every time you pick up the paper now or turn on the news you hear about someone laying off employees or another firm going bankrupt. Its sad that we are actually missing the days of months past where we had no pocket money but at least there were more jobs. So what is a person to do?
Is school the answer? Many people are taking this opportunity to go back to school hoping that by the time they graduate the market will be better. However, things haven’t been great for awhile so there are already plenty of people back in college now for an additional degree who are now graduating. If you want to get an MBA and have been thinking about it for awhile, I am not trying to talk you out of it, but going back to school is not a sure answer to finding a job, it just postpones the search.
Should I start my own business? The first thing to consider is whether you have capital. You may not have heard but there is a credit crunch and getting financing is difficult. Many new businesses take a couple of years before they make enough money for the owners to live off. To start a new business, you should have other sources of income for the first two to three years.
I can’t give a definite answer, I can only tell what I see and know, which is this: yes, things are bad now but they will get better. It probably won’t be this year and maybe not next year but it will get better. For now, just do what you can to reduce your cash outflow and expenses in order to survive.
Alternative ways to pay for Christmas
Many stores are touting their layaway plans this year as well as store credit cards. While these are both ok options, I prefer to stay away from credit cards and thus avoid the temptation to overspend. So this year, instead of throwing Christmas on your credit cards or putting something on layaway, check out these great ways to save or make a few extra bucks that you can put towards the Santa fund.
1. http://www.volition.com/
This site offers information on getting paid to surf the web, freebies from a variety of websites, coupons, and much more. I often use Volition to sign up for mystery shops when I have some free time. While mystery shops will not pay the bills, they are great if you want some extra cash. Many sites make you pay to have access to this information but with Volition you get it all for free. So if you are interested in making some extra money shopping or eating out, don’t pay for the info, check it out here instead.
2. http://riveroffers.com/?cogid=frend&refid=
This site offers everything you can imagine, If you are tired of your current cellphone provider, check this site out. You get the newest phones free from all the name brand providers plus free shipping and accessories as well! My husband and I don’t shop anywhere else when it comes to cellphones because nobody has been able to beat these deals. They also offer over 25 different credit cards sorted by what you want out of your card, ie points, low interest rate, cash back, etc. They also offer web hosting, domain names, high speed internet and much more. The best part, you can become an agent for free and then purchase what you need from yourself for additional discounts. Check it out.
3. www.couponmom.com
While not as exciting as the other two, this website offers a variety of ways to save money on your grocery bill and nights out on the town. Their weekly emails give you the best sales in town and options to print out coupons for additional savings.
Going, Going, Gone. House sold for $10,000!
Pinch me, I must be dreaming. A 4 bedroom 2.5 bath home with over 2,000 square feet built in 2006 is going on auction starting at $10,000. This isn’t just a rare deal, there are plenty of others available as well.
In this current market life is pretty tough if you don’t have any savings to fall back on. For those that do have a little cash lying around though, there are plenty of opportunities to invest for retirement. One of the best options that I have seen is the Florida housing market. Yes, house values are falling like crazy in Florida and getting a mortgage is incredibly difficult, however, rental rates have not fallen and people who have been foreclosed on still need a place to live.
The Cape Coral/Fort Myers area has 58 houses and 44 lots going up for auction this month. Many of these homes have never been lived in and the auctions are starting at $10,000 or $25,000 for houses and $1,000 for a lot. With so many homes being auctioned at once and the market already saturated, it is very possible that people will be walking away next weekend with a house for only $10,000 plus closing costs!
A quick check on Craigslist shows that houses in the area are renting for $950 a month for a house or $500 a month for a two bedroom condo. Even if you rent the house out for $500 a month, the potential for future earnings is enormous.
Florida isn’t the only area in the country with some great auctions going on. Check out the following website for more info.
http://www.williamsauction.com/Search/SearchResultsState.aspx?statusid=1&CategoryID=1&p=1.2
Finding Bankruptcy Assistance Online
Bankruptcy can bring more problems with it than you might expect, especially if you’re not entirely sure what it is. Luckily, there are a variety of online resources that can not only educate you as to the ins and outs of bankruptcy but can also assist you with your filing or help you to find an alternative to filing for bankruptcy.
Of course, the topic of bankruptcy is rather broad and can’t be completely covered within the limited scope of this article. Instead, this article is simply meant to point the way to further information and to possibly help answer some questions that you might have concerning bankruptcy. If you have questions that can’t be answered with the information provided here, you should consult an attorney or bankruptcy specialist in your area to make sure that you have the best information that pertains to you and your personal situation.
What Is Bankruptcy?
Bankruptcy is a legal filing that makes the claim that you are in debt to the point that you cannot reasonably recover without the assistance of the courts. When you file for bankruptcy, a court-appointed representative will go through your debts and recommend to the court that some of the debts be discharged (meaning that they are legally excused and no longer have to be paid), and other debts may be reduced.
This representative will then work with you and your creditors to create a repayment plan which will be overseen by the court system; in most cases the amount to be repaid is deducted automatically from your payroll cheque before you even get a chance to see the money. These deductions will continue until the remaining debt is paid off, after which point the bankruptcy itself is discharged.
It’s important to note that not all eligible debts will be discharged, and that not all types of debt are eligible for discharge. The court will usually only discharge those debts that it is obvious that you won’t be able to pay, and any property that you have which is under lien is likely to be sold as a part of the bankruptcy process. Court-appointed debts such as child support and alimony payments are never discharged, and will still be due after the bankruptcy.
Finding Bankruptcy Information Online
In order to find additional information on bankruptcy and bankruptcy specialists online, you should use your preferred search engine and do a search on the legal and technical aspects of filing for bankruptcy in the area where you live. You can also use online telephone directories to search for experts in your area, or for law firms that specialize in bankruptcy cases. You might also want to look for forums dedicated to those who have gone through a bankruptcy in your area, in order to get more of a “first hand” look at what bankruptcy is like. This will enable you to prepare yourself for some of the more difficult aspects of filing for bankruptcy and the recovery period afterward.
Bankruptcy Alternatives Online
Just as you can find information on bankruptcy online, you should also be able to find information on bankruptcy alternatives. This may include consumer credit counseling agencies and other related services, tips for self-regulation and debt relief, and possibly information on low-interest debt consolidation loans using home equity or other high-value collateral. You should keep in mind, however, that there are a number of scams created to prey on those who are down on their luck financially. Do your research on any bankruptcy alternatives that you find to keep from becoming a fraud statistic.
Filing Your Personal Bankruptcy
When you decide to file your own bankruptcy you are taking on a lot of responsibility. You have to be very focused on your personal bankruptcy. It can be easy to miss points that are important to the process. It is not abnormal for people to file their personal bankruptcy themselves, but it is always advisable to seek assistance from someone who has been through eh process or who is a professional in the area of bankruptcy.
Options in Personal Bankruptcy
When filing bankruptcy your first determination is what type of bankruptcy to file. The most common choices are Chapter 7 or Chapter 13.
Chapter 7 is where all debts are erased. To file this you must be under a certain income level. You should also only file this if most or all of your assets are exempt.
Chapter 13 is a repayment plan. The court establishes a plan to repay your debts according to your income. You and your creditors must agree upon the plan. This is best if you have a lot of assets that could be lost through a Chapter 7. Also the new laws require people over a certain income level to file Chapter 13 and not Chapter 7.
Choices to Make in Filing Personal Bankruptcy
You will have many others things you must decide upon as well. As mentioned, exemptions are important. You may have to decide what assets to use as exemptions and what to let go.
You will also have to look at your ability to repay. You may be better off seeking out repayment outside of bankruptcy court instead. That would be less damaging to your credit.
You will also have to decide if you want to hire an attorney once you get into the process to help you in court. In a Chapter 13 having an attorney can really help you to get the best repayment plan.
Important Points to Consider when Filing Personal Bankruptcy
One of the main things to consider when filing bankruptcy and something an attorney would pint out is alternative options. You really have to think about what you can do besides filing bankruptcy. You may be able to figure something out that will leave you in better shape.
However, many times bankruptcy is really the only way to fix financial trouble and that is why the laws are in place. They are there to make sure you do not get too deep in debt and that you can fix the situation and start all over again with a clean slate.
Make sure you do not abuse the system. While there are plenty of checks in place to keep a person from misusing the system, there are still things that you should not do - like filing repeatedly and filing against creditors you do not need to.
Getting Out of Debt
The majority of Americans are currently in debt whether it be because of credit cards, unpaid loans, or other things of the sort. Once you’ve gotten yourself so deep into debt, the only way out seems to be filing bankruptcy. However, this is not your only option. If you can slowly work your way out of debt, this will increase your credit score dramatically and will look better on your credit than if you were to file bankruptcy.
Depending on your level of debt, you might want to consult a credit counselor. They can help you tremendously with getting back on your feet. If you’re not too deep and believe you can do it yourself, more power to you.
The first thing you must do is obtain a copy of your credit report. You can do this for free at freecreditreport.com. Take note of everything that is on your credit score in order from the most money owed to the least amount owed.
Next, start with the largest debt on your record. Contact the company that you owe this money to and try to work out a weekly or even monthly payment plan. Ask them what the minimum payment is that they would be willing to accept (weekly or monthly) and begin payments immediately.
Do this with each of the debts on your credit report and pay off the ones that you can in full. You may run into a company that is not willing to allow you to make monthly payments and instead say that they will only accept full payment. If this problem arises, speak to the manager of the company and see if there is anything you can do. If you’re still in the same prediciment, send a certified letter to their corporate office explaining your situation and exactly how you are willing to fix it.
Once you have begun to make payments on your debts, it should either be removed from your credit report or it should state that you are making payments. This looks much better on your credit than debts that are just sitting there with no action being taken.
The best time to start paying on debt would be after tax returns when you have the money and don’t have to worry about paying off debt using money that will put you back in debt. You’ve got to be smart about it. Another option would be to begin depositing money into your savings account strictly for paying off debts and vow not to touch it.
I completely understand that paying off debt is a stressful thing, and it may cause you to have to sacrifice some things that you want in life, but believe me, once everything is paid off and you start on a clean slate, life will be much, much easier. Just be sure to try and keep it that way.
Remove Chapter 7 Bankruptcy From Your Credit Report
Filing for bankruptcy is not easy and for years you will have to deal with the fallout from filing. It is a long process and mentally draining. It also doesn’t help that it stays on your credit card for years to come. This website has tips on how you might be able to remove it.
A Road Well Taken: Bankruptcy
We know that millions of people are in debt. Here is a great article that doesn’t just tell you that people are in debt. It takes you on the road to how it happened to these people.
Filing For Bankruptcy
Filing for bankruptcy is never easy even though businesses happily run to it when they fold taking hard earned money from many individuals and lately it has gotten tougher. It is also not easy in the sense that it can be very confusing about exactly what it is you need to do. Here are a few places that you can go that will hopefully help point you in the right direction.
Filing bankruptcy, a how to guide
Thinking About Filing For Bankruptcy?