Maybe, and maybe not. While there certainly are housing programs out there and the forty-nine state Attorneys General settlement of certain mortgage claims contains some relief, not everyone will qualify for relief under these programs. Qualification criteria are complex and a remedy may depend on who owns your mortgage. For instance, the current [...]
Many people think that “bankruptcy” is a dirty word. Somehow even though the Bankruptcy Code allows individuals a fresh start if you have fallen on financial hard times, it does not feel right to some people. Instead, the debt settlement option seems more attractive.
It isn’t and here is why.
When Congress “reformed” the Bankruptcy Code in 2005, they thought is was a problem that people who could afford to pay something to creditors were filing liquidation cases under Chapter 7 and paying nothing. The solution? Adopt an arbitrary income cutoff for Chapter 7 cases.
The arbitrary income cutoff the Congress [...]
Often individuals in Chapter 13 Bankruptcy ask if they can take on new debt during the years they are under a Plan of Reorganization. Either the car lease is up or a mortgage modification would help improve the cash flow. You can incur new debt in Chapter 13 but you have to ask [...]
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