10/02/2020 - Should you Sign-up with a Debt Consolidation Company?
The assistance that a Debt Consolidation (or Debt Relief) companies offer generally comes in two flavors. The first flavor is Debt Management, and the second is Debt Settlement. Before signing-up with a Debt Consolidation Company, I recommend reviewing your bankruptcy options with us first.
Debt Management Plans:
In a Debt Management plan, the Debt Relief company offers to help you manage your payments to creditors. You make one monthly payment to the Debt Relief Company, and they in turn make payments to your creditors. The Debt Relief company will attempt to decrease interest rates, reduce minimum payments, and waive penalties.
Here are several reasons why Debt Management Plans may not be successful. There is no legal obligation for your creditors to work with the Debt Relief companies. Many creditors will voluntarily work with the consolidator, but many creditors will not. Therefore, you may not be able to consolidate all of your debts in the Debt . . .
09/02/2020 - Repossessed Vehicles: What are my Bankruptcy Options?
Pennsylvania Right of Redemption for Repossessed Vehicles:
Under Pennsylvania law, vehicle owners have a 15-day right of redemption for repossessed vehicles. This means that if an individual can pay the entire car loan balance within 15 days of the repossession, then the lender must return the repossessed vehicle. For most people, the right of redemption is not very practical because if they were able to pay off their entire vehicle loan in the first place then it would not have been repossessed.
Chapter 7 Bankruptcy and Redemption for Repossessed Vehicles:
The right of redemption works differently in a Chapter 7 Bankruptcy. Instead of paying off the entire loan balance, car owners would only need to pay the appraised fair market value in order to redeem the vehicle. This may still be expensive, but some lenders specialize in so called "Redemption Loans," although . . .
Individuals who have defaulted on their mortgages may apply for loan modification programs that are sponsored by the federal government or supported by the lender themselves. If a loan modification application is denied, then borrowers should consider filing a Chapter 13 Bankruptcy to save their home.
Generally an individual applying for a loan modification must supply to the lender proof of income for the last 60-90 days, bank accounts statements, tax returns from the previous two years, hardship letter explaining the individuals financial circumstances, utility bills, invoices for real estate taxes, and proof of home insurance.
Benefits of a Loan Modification:
Loan modifications programs are designed to help individuals with a reduced income stay in their homes and avoid foreclosure. Several of the techniques these
programs use to modify your mortgage are by lowering your current interest rate . . .
05/02/2020 - What is the Process for Filing Bankruptcy
The first step is meeting for the consultation. Our office offers a free initial consultation to make sure that bankruptcy is the best option for your financial situation. If we advise you that it makes sense to file bankruptcy then the next step is to determine whether you qualify for Chapter 7 or if a Chapter 13 payment plan is a better option. The consultation consists of an interview to review your debts, assets, income and expenses. The consultation generally last from thirty to forty-five minutes.
A few helpful materials to bring to your initial consultation are your: (1) last 6 months of pay stubs, (2) previous two years federal tax returns, (3) credit card statements or collection notices, (4) collection lawsuits or judgment court papers, (5) most recent bank account statements, (6) retirement account statement, and (7) mortgage and vehicle loan statement showing remaining balance.
At the end of your interview you will have a better understanding of your bankruptcy and other debt relief options. Also, we will send you a letter . . .