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If you’ve always had regular income, you might have thought you’d never need to file bankruptcy. Unless, of course, your debt has spiraled out of control. While regular income is wonderful to have, if it’s still not enough to pay all your debts, instead of getting ahead each month you may be falling further and further behind. If this sounds like you, then Chapter 13 might be a ...
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If your debt has piled up beyond what you can afford each month but you have enough income to make monthly payments if they were more affordable, then a Chapter 13 bankruptcy might be a good option for you. Income eligibility for Chapter 13 To qualify for Chapter 13, you must have regular income sufficient to afford the repayment plan you submit to the bankruptcy court. Income can be from a number ...
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Struggling with finances—and I mean really struggling, to the point that you’re yelling or crying every day—is no way to live your life. However, when weighing the pros and cons of bankruptcy, many people don’t take into account the emotional and psychological benefits. Take stock of your life and ask yourself if you feel any of the following: If you’re experiencing ...
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Many parents took out PLUS loans or co-signed on private loans to help put their kids through college, grad school, law school, or medical school. Now, many of those graduates cannot find work sufficient to pay their basic bills, let alone help their parents repay those loans. A recent New York Times article explains how these loans are financially crushing millions of parents age 60 and older. As ...
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If you have an expensive monthly car payment you can no longer afford, then Chapter 7 bankruptcy can help by wiping out your debt, including that high car loan, and give you a new start. Here are a couple of things to think about if you’re worried about not having a car after bankruptcy: Get rid of a high car payment and buy a new car post-bankruptcy. Businessweek reported that auto loans in ...
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The truth about bankruptcy these troubled economic times is that most people don’t lose anything except their debt. Most people don’t lose their home, car, jewelry, clothing, furniture, or anything else. The bankruptcy law exemptions mean you get to keep a lot. In California, the law assigns a generous amount for the assets we need to live here, usually including enough for your home, ...
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Most people who are struggling with debt do not lose their homes in bankruptcy. Whether you can save your home in bankruptcy depends on various factors, including the kind of debt you’re carrying and whether you have regular income. You should discuss your situation with an attorney to accurately determine if you can save your house in bankruptcy. To help you get started, though, ask ...
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The looming “fiscal cliff” means more financial worries for families in San Diego and throughout the nation. According to The Wall Street Journal, as many as 90 percent of American households will take a “financial blow” next year from a combination of the tax hikes, spending cuts, and rising unemployment that are expected to come. Families that are already struggling to ...
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I often get questions about the effect bankruptcy will have on a person’s future chances of getting a loan, especially a home loan. Borrowers are often surprised that bankruptcy does not automatically disqualify a person for a home loan. In fact, an FHA mortgage loan may be obtained in as little as one to two years after bankruptcy in many cases. FHA Loans After Bankruptcy An FHA loan is a ...
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When evaluating whether to give a borrower a loan after bankruptcy, lenders look to the “Four C’s of Credit” — Credit history, Capacity to repay, Cash to close, and Collateral. Credit history: Bankruptcy will obviously be a factor in your credit history, but a lender will also look at your overall credit history (before and after the bankruptcy) rather than focusing on a ...
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Bankruptcy will affect your credit score. But, let's face it, your credit probably isn't that great right now anyways. However, you can immediately start rebuilding your credit after bankruptcy and increase your FICO score over time. I read an article recently in The New York Times discussing the fact that people with high FICO scores have one important thing in common: They have low ...
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When facing bankruptcy, one of the biggest worries clients have is that they’ll never get credit again—or at least not for the 10 years during which bankruptcy shows on their credit report. When I tell clients it won’t be as difficult as they fear, I usually hear a sigh of relief. Bankruptcy will affect your credit score in the beginning, but you will be able to get credit again ...
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Learning about the intricacies of bankruptcy is certainly not an enjoyable task, nor is it an easy one. There’s a lot of information out there to wade through because so many people today are being forced to contemplate the possibility. To make it a little simpler, let’s pare it down to the basics. For most people in financial straits, Chapter 7 bankruptcy is going to be the most ...
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Confused about whether filing Chapter 7 bankruptcy or Chapter 13 bankruptcy would be better for you? Take a look at this handy chart to compare the most common scenarios for these two types of bankruptcy cases : CHAPTER 7 CHAPTER 13 “STRAIGHT BANKRUTPCY” “CONSOLIDATION” /REPAYMENT PLAN You can no longer keep up with your monthly credit balances, your income is less than ...
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Most people do not lose their home or their car because of bankruptcy. Here is a brief rundown of the top ways to save these assets during bankruptcy: Stop foreclosure: If you’re behind on your mortgage payments, filing bankruptcy will stop foreclosure (at least temporarily). In Chapter 13 bankruptcy, you can even catch up on missed payments and pay the arrears over time. Homestead ...
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