Real estate home loans, mortgage loans and refinance and home equity regardless of FICO score

Bankruptcy Information:

Consumer debt is at an all time high. You are not alone but there are signs that you may not be noticing. The first sign of financial trouble can be worrisome but considering bankruptcy should be a last resort. In some instances, filing for debt relief can be thought of as first step of a financial strategy. While bankruptcy may be appropriate for some people in certain situations, there are other alternatives that can accomplish the same results without going as far as filing for bankruptcy.

How do you know if you might be in financial trouble? Here are some signs that you might be in financial trouble.

• If you are using your credit cards for every purchases?
• If you are maxing out your credit cards every month
• If you are only able to make the minimum payments?
• If you are using one credit card to make payments on another?
• If you are using payday loan services?
• If you are pawning household items to pay bills?
• If you are cashing in long term investments early?
• If you do not have a cash reserve for unexpected problems?
• If you are working overtime just to keep up?

Here is some information pulled directly from the FTC’s website http://www.ftc.gov/bcp/conline/pubs/alerts/bankrupt.htm that may be able to help you understand debt better and help you avoid making a costly mistake.
If you’re having trouble paying your bills, consider these possibilities before considering filing for bankruptcy:

• Talk with your creditors. They may be willing to work out a modified payment plan.
• Consider contacting a credit counseling service. These organizations work with you and your creditors to develop debt repayment plans. Such plans require you to deposit money each month with the counseling service. The service then pays your creditors. Some nonprofit organizations charge little or nothing for their services.
• Carefully consider a second mortgage or home equity line of credit. While these loans may allow you to consolidate your debt, they also require your home as collateral.

If none of these options is possible, bankruptcy may be the likely alternative. There are two primary types of personal bankruptcy: Chapter 13 and Chapter 7. Each must be filed in federal bankruptcy court. The current filing fees are $185 for Chapter 13 and $200 for Chapter 7. Attorney fees are additional and can vary widely. The consequences of bankruptcy are significant and require careful consideration.

Chapter 13 allows you, if you have a regular income and limited debt, to keep property, such as a mortgaged house or car that you otherwise might lose. In Chapter 13, the court approves a repayment plan that allows you to pay off a default during a period of three to five years, rather than surrender any property.
Chapter 7, known as straight bankruptcy, involves liquidating all assets that are not exempt. Exempt property may include cars, work related tools and basic household furnishings. Some property may be sold by a court appointed official—a trustee—or turned over to creditors. You can receive a discharge of your debts under Chapter 7 only once every six years.

Both types of bankruptcy may get rid of unsecured debts and stop foreclosures, repossessions, garnishments, utility shutoffs, and debt collection activities. Both also provide exemptions that allow you to keep certain assets, although exemption amounts vary. Personal bankruptcy usually does not erase child support, alimony, fines, taxes, and some student loan obligations. Also, unless you have an acceptable plan to catch up on your debt under Chapter 13, bankruptcy usually does not allow you to keep property when your creditor has an unpaid mortgage or lien on it.