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.
It’s not unusual for some debtors to ignore bills and phone calls from lenders, and some borrowers do not even know how much they owe or to whom. But what do you do when you are ready to tackle the problem? How do you identify all of your consumer debts? Recently on our bankruptcy forum a user asked, “I am considering filing Chapter 7 bankruptcy, but I am embarrassed to admit I am not sure I can identify all of my consumer debts and the amount owed. How do I get started?”
Many people decide to file bankruptcy without fully understanding what it will and will not do for them. They also do not consider the limitations bankruptcy will place on their ability to make large purchases, at least for a specific time period. Recently on our bankruptcy forum a user asked, “I am considering buying a house. Will bankruptcy help me?”
Unfortunately, if you are considering filing bankruptcy you are most likely already in a very precarious financial position. In fact, it’s likely you have thousands of dollars in unsecured debts such as credit cards and medical bills. You may even have stopped paying your mortgage or had your car repossessed. The last thing you need is to pay thousands of dollars to file bankruptcy to get yourself out of debt. Recently on our bankruptcy forum a user asked, “Is filing bankruptcy free? If not, what can I do to save money?”
According to the Federal Reserve statistics, the average US household credit card debt stands at $15,611, counting only those households carrying debt. If all households are considered, even those who do not normally carry debt, the amount drops to an average of $7,283. So if you have credit card debt you are not alone. You are among millions of Americans who have had to rely on credit cards to purchase daily necessities.
Filing bankruptcy can be complicated, especially if you are not familiar with bankruptcy laws. Recently on our bankruptcy forum a user asked what they needed to do to get the bankruptcy process started?
A recent USA Today article lamented the fact that many Americans were too strapped for cash to file bankruptcy, and with the up-front costs of hiring a lawyer and paying the bankruptcy fees hitting an average of $1,500 this is not hard to believe. Experts warn that not only has filing Chapter 7 bankruptcy become more expensive, it has also become more complicated, forcing many debtors to seek ever increasing legal services from a bankruptcy lawyer. So how do you save money when filing Chapter 7 bankruptcy? There are several suggestions discussed below.
If you are considering filing Chapter 7 bankruptcy you may be concerned with whether or not you will lose all of your assets. Will you have to forfeit your home? Will your car be repossessed car? Will the bankruptcy court allow creditors to repossess your personal possessions? Recently on our bankruptcy forum a user asked, “Will I lose everything if I have to file Chapter 7 bankruptcy?”
Although debtors are protected against certain abusive, unfair, or deceptive practices for debt collection through the Fair Debt Collection Practices Act (FDCPA), creditors are allowed to make aggressive attempts to collect debt payments. Recently on our bankruptcy forum a user asked, “What actions can debt collectors take to legally collect debt payments for debts?”