Recently on our bankruptcy forum a user asked, “My wife and I have only lived in our house for four years. I lost my job three months ago and have not been able to find new employment. I don’t want to lose my house, but the bank is threatening foreclosure. Do you have any practical steps I can take to stop or delay the foreclosure?”
Recently on our bankruptcy forum a user asked, “I have lost my job. Creditors are calling constantly. My bills and debts are the first thing I think about in the morning and the last thing I think about at night before I go to bed. I have tried to contact the creditors and negotiate new debt payments plans but several of creditors are threatening to sue. I am wondering what I should do. I know I shouldn’t avoid a creditor, but if I have no money and cannot repay them what are my options?”
According to the Federal Trade Commission (FTC) up to 25% of consumers have some type of error on their credit report which could affect their credit scores. A much lower percentage, however, have serious errors which could result in serious financial ramifications. With this in mind, it is critical that all consumers check each of their three credit reports each year.
Filing bankruptcy is a big decision and can have serious financial ramifications. Recently on our bankruptcy forum a user asked, “What are the steps for filing bankruptcy and how do I know it’s right for me?”
Recently on our legal forum a user asked, “How do I get out of debt?” Debt or accumulating debt is simply a function of spending more than you make, and when this problem persists and debts accumulate well above what you are able to pay, you will eventually find yourself in a financial crisis. So at the most basic level, to get out of debt you simply must earn more than you spend.
The Associated Press reported yesterday that Detroit, who has filed the largest municipal bankruptcy filing in the history of the United States, has submitted an updated repayment plan to the federal court. The repayment plan reveals new details on the actions the city will take, to not only restore public services, but also how they plan to restructure their debts.
Mt. Gox, formerly the world’s biggest bitcoin exchange, filed for bankruptcy protection in Japan in February and last Monday received bankruptcy protection from the United States courts to temporarily stop any legal action against the company.
Assuming your credit score is decent now might be a good time to buy a home. According to a CNN report this week, the 30-year fixed, mortgage interest rates have been declining. Now, according to Freddie Mac’s weekly survey, the weekly average mortgage interest rates have declined to 4.28%, down from 4.37% last week. It might also be a good time to refinance, especially if you want to refinance with a 15-year fixed, mortgage interest rate. These rates also decreased this week down to 3.32% from 3.39% last week.
Although Kevyn Orr, Detroit’s state-appointed city manager, has been feverishly working with city officials to complete the Detroit bankruptcy repayment plan which outlines how Detroit will repay or renegotiate the estimated $18 billion in debt and exit bankruptcy financially viable, a United States Court on Friday has stated they will hear appeals of seven groups of petitioners in the Detroit bankruptcy case. At question will be whether Detroit is actually eligible for bankruptcy.
Detroit has released its debt repayment plan to its creditors reaching one of the major steps to complete their bankruptcy and emerge from the largest municipal bankruptcy in the history of the United States. The plan, which was given confidentially to creditors on Wednesday, provides detailed information about how the city plans to repay hundreds of creditors and emerge financially stable after bankruptcy.