Jun 24, 2020 | Frequently Asked Questions About Bankruptcy, General Blog
The best indicator is your debt-to-income ratio. You can calculate this by taking the total amount of money that you spend each month paying off your debt (this includes all recurring debt, such as mortgages, car loans, child support payments and credit card payments) and dividing by your gross monthly income. The lower the number, the better. If you do not have extra money coming in, then NO debt consolidation plan can resolve it.
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Jun 1, 2020 | Frequently Asked Questions, Frequently Asked Questions About Chapter 13
Chapter 13 bankruptcy is a court process that allows you to propose an affordable three- to five-year plan for mortgage solutions and reduction and repayment of any type of debt based upon your monthly ability to repay. Your repayment plan is prepared by an attorney in accordance with applicable law and your particular income and expenses. It is a customized plan that does not require the approval of your bank or your creditors. Only the correct Plan creates the correct solution.
Chapter 13 bankruptcy stops a foreclosure in any stage immediately and allows for the repayment of past-due mortgage payments over a three-to-five year period while allowing you to start making your regular monthly payments again as if no problem had occurred. It does not require the approval of your mortgage lender and will allow you to proceed even if your bank or servicing company or their attorneys don’t agree. Depending on the value of your home, it also allows for the removal of second mortgages and other liens.
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Jun 1, 2020 | Frequently Asked Questions, Frequently Asked Questions About Divorce & Bankruptcy
During a Divorce, you have the greatest number of choices and options for debt relief. Be certain to seek experienced debt relief attorneys who can provide you with the personalized service and protection you need to regain financial stability and security. Understanding the financial problems of a divorce and the potential solutions while the divorce is still pending assures both spouses of maximizing financial success in their separate future lives.
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Jun 1, 2020 | Frequently Asked Questions, Frequently Asked Questions About Bankruptcy
Form 1099-C is an information return used to report canceled debt to borrowers for tax purposes. A borrower does not have income when an amount is borrowed. However, if the borrower does not pay the loan back and the bank forgives all or part of the loan, then the forgiven portion of the debt constitutes taxable income to the forgiven debtor.
Read more about Life after Bankruptcy and the 1099-C form
May 23, 2020 | Frequently Asked Questions, Frequently Asked Questions About Bankruptcy, Frequently Asked Questions About Debt Collection, Frequently Asked Questions About Debt Relief
Consumers can sue creditors who have violated consumer protection and fair debt collection laws. Unlike other attorneys, we are not afraid to file suit against creditors who violate your legal rights.
Read more about How You Can Prevent Debt Collectors from Harassing You
May 22, 2020 | Frequently Asked Questions, Frequently Asked Questions About Bankruptcy, Frequently Asked Questions About Divorce & Bankruptcy
The short answer is – You’re still on the hook. The delegation of responsibility for debt obligations on credit cards, mortgages, car loans, taxes and other personal debts within a Divorce Decree is not binding on third party creditors, banks or lending institutions. Furthermore, even post-divorce obligations that are being paid and remain completely current will weigh heavily on your future debt-to-income ratio. This will affect your credit score and any ability to properly apply for needed credit or loans at competitive rates long into the future.
Make sure all joint obligations are addressed prior to any divorce action. Be sure to fully separate all joint debts completely prior to the completion of any divorce proceeding. Be certain to legally separate all financial obligations directly with each creditor. Don’t rely on the delegation of responsibilities in your Divorce Decree – It won’t protect you, your future, or your credit score. Compile a complete list and obtain all three credit reports to understand all your joint obligations before completing any divorce proceeding.
