Recently on our bankruptcy blog a user asked, “If I have initiated a home foreclosure do I need to leave right away or can I stay a few months?” Although home foreclosures have been in decline from their highs a few years ago, some home owners are still facing a financial crisis and have been unable to meet their mortgage obligations. So what do you do if you have missed a few payments? Should you leave right away or is it better to stay put until you are forced to leave?
Social Security Disability Insurance (SSDI) is awarded to claimants who have a severe medical health condition which is so severe it does not allow them to work for at least 12 continuous months. Recently on our bankruptcy forum a user asked, “I have received SSDI benefits for about 10 years. Recently the SSA determined I was no longer disabled but did not stop my disability benefits for several months. Now they are telling me I owe them $10,000. Can I discharge this debt if I file for bankruptcy?”
Although Chapter 7 bankruptcy may allow bankruptcy filers to discharge certain unsecured debts, it does not discharge secured assets such as a house or car. Secured debt, such as a car loan, is by definition collateralized by the asset. So in this case the creditor does not have to simply write off the car loan. Instead they have the option to repossess the property to satisfy the terms of the car loan agreement.
If you have a home mortgage, you and your bank own your home. If you fail to meet the contractual requirements of the loan the bank has the legal right to repossess the home, a process called foreclosure, and potentially charge you for legal fees, home foreclosure fees, and a deficiency judgment. So whether you have lost your job, your adjustable rate mortgage has readjusted to a higher rate, or you have become seriously injured, if you are facing home foreclosure, you need a help.
Close to one million people file bankruptcy last year. Although this number was substantially lower than the number a few years ago, it is clear that the U.S. economy has not improved for everyone. Although filing bankruptcy still has a negative connotation for some, many people who have struggled with unemployment, high medical bills, foreclosures, lawsuits, or delinquent debt may not have another option and may be considering whether or not it is right for them.
It can be very expensive to hire a bankruptcy lawyer. Given that many debtors have little income, high debts, and may be unemployed many of them are choosing to file bankruptcy without the legal help of an injury lawyer. Unfortunately, bankruptcy has not only gotten more expensive, it has also become more complicated.
Payday loans are loans made to borrowers who need quick and easy money and who do not have savings or other credit options. Payday loans should be the last resort for borrowers who have an immediate and temporary financial need such as a medical bill or car repair. Payday loans should, however, be paid back as soon as possible to avoid additional fees and finance charges.
Can I discharge my payday loans and medical bills with Chapter 7 bankruptcy?
When deciding whether or not to file Chapter 7 or Chapter 13 bankruptcies there are several considerations. The first is whether or not you will qualify for Chapter 7 bankruptcy. Unfortunately, bankruptcy law changes have made it more difficult to file Chapter 7, and many debtors will now be required to file Chapter 13 and repay a portion of their debt over a 3 or 5 year repayment plan. Recently on our bankruptcy forum a user asked, “Can I discharge my payday loans and medical bills with Chapter 7 bankruptcy?”
Did you know that even after your home is sold at auction or by the lender you could still be on the hook for money owed on your loan? This debt is called a deficiency, and it occurs if the amount you owed the lender is more than the foreclosure sale price.