When monetary disaster looms and there is no more money to pay the swiftly mounting bills, many people feel that bankruptcy is the only option. After all, for centuries bankruptcy has been the most commonly sought solution for when money is too little and the bills are much too big. Why would it not work even in these trying modern times? However, the legal system is not quite a simple as it used to be when it comes to bankruptcy. In fact, thanks to new regulations within the Obama administration, there are other options such as loan modifications that will suit the majority of those in debt far better than traditional bankruptcy would.
The most common kind of bankruptcy is known as a Chapter 7 Bankruptcy. This kind of bankruptcy, sometimes referred to as a “straight bankruptcy", has become very difficult to properly complete a new bankruptcy claim under due to new laws. Even if you did file for Chapter 7 Bankruptcy and it did go through, all this kind of bankruptcy will do is sell your non-exempt property and give the money from the sales to your creditors. That means a Chapter 7 Bankruptcy will not save you from the serious damage to your credit score nor can it get you out of an expensive mortgage agreement; it is only a quick fix for an underlying problem.
Chapter 13 Bankruptcy allows you to reorganize your debts and to slowly pay them off without interest for up to five years. This, too, is not a good option for many people as despite the fact that old debts will not gain interest, the debts are still there and living expenses and other new debts can still mount on top of your old debts. You must also have a very steady income for this to be approved as you are still paying everything out of your pocket; it's just that collectors can not collect from you forcibly for a little time. Your credit score will still be ruined and you will still have that expensive mortgage to worry about, however.
The attorneys of The 1st Foreclosure Prevention would like to let you know there are other options besides foreclosure and bankruptcy, especially if you have been late on mortgage and/or loan payments, have not paid interest and fees on your mortgage, or have an adjustable interest rate on your account. Instead, a home loan modification would be beneficial in this case as the highly trained legal professionals at 1st Foreclosure Prevention will work with your lenders to lower the interest rate on your mortgage, have some of your debts forgiven, negotiate lower monthly payments, stabilize your mortgage rate and more. A loan modification is also good as it does not hurt your credit, is far easier to do than filing for bankruptcy, and you get to retain the money paid towards your mortgage while keeping your own home as well. Call 1st Foreclosure Prevention today to talk to one of our helpful attorneys about a loan modification today.
1st Foreclosure Prevention is a nation wide company that is nationally recognized for it's years of experience, excellent staff, and dedication to helping others. Calling 1st Foreclosure Prevention is the first step to getting your finances back on track, so please call us as soon as possible. The sooner 1st Foreclosure Prevention is on the case, the sooner you can get your life back to normal.
Contact: 1st Foreclosure Prevention
[email protected]
Contact No: 215-660-5494
Fax: 800-477-7951
Address: 67 Buck Road B25, Huntingdon Valley, PA 19006
http://www.1stforeclosureprevention.com