The state of our current economy is putting the squeeze on everyone. From rising consumer costs for transportation and living expenses to adjusting mortgage rates, our nation is beginning to feel the pinch of poor financial habits. For some, tightening the family budget by cutting back on expenses is just the remedy needed to get back on track. For others, making ends meet is a thing of the past and every week you are faced with whether to pay off your pay day loan or apply for another at a whopping interest rate of up to 365% apr.
It's time for a new direction in 2008! Take control of your financial future and get back on track. Create a realistic budget that cuts out the fat and is a mean and lean financial plan for financial stewardship. Postpone luxury purchases, go ahead and get that second part time job. "Just say no" to adding new credit or purchasing on credit for the additional discount. It's just a gimmick to encourage you to purchase more than you need with money that you don't have now. Surprise the retail clerks by paying cash and declining all offers for low interest and no interest credit cards.
If you happen to be one of the many persons whose financial path is irreversible and you don't have a rich aunt or uncle who is willing to lend or gift money to solve your financial problems, you need other debt relief opportunities.
1. Are you afraid that you're going to lose your home?
Getting seriously behind on your mortgage payments can be a frightening situation. The current mortgage crisis has many homeowners afraid to answer the phone or read their mail in fear of their next rate adjustment. No one wants to face the prospect of losing their piece of the American dream. Debt relief provides the relief you need to stop foreclosure actions and keep the home you worked so hard to get. Filing for debt relief stops mortgage companies in their tracks. Before debt relief, they may be uncooperative and continually charging fees and costs. After debt relief, they are forced to provide you the opportunity to catch up. Don't be bullied by your mortgage company.
2. Are you in danger of losing your car because of missed payments?
Having a car is critical for everyone. Often if you lose your car, you often lose your job because you can't get to work. If you car is in danger of repossession or has been recently repossessed, filing for debt relief can prevent your car from being taken and require the return of the vehicle after repossession. In certain situations, it is even possible to reduce the contract interest rate on your car. Debt relief allows you to keep your car and pay for it over a longer period of time. Don't continue to pay high interest rates on a "hoopty" that's not worth the price you paid for it.
3. Is part of your paycheck being withheld to pay creditors?
Having a creditor take a portion of your pay makes a bad situation worse. Garnishments have a ripple effect on your family by preventing you from being able to provide for basic living necessities such a food and utilities. Pursuing debt relief stops the garnishment of you wages or bank accounts and give you the time you need to reorganize your finances.
4. Tired of receiving threatening phone calls and letters?
Collectors and collection agencies are notorious for harassing and hounding you into unfair and unreasonable repayment plans. Stop the calls to our home, relatives, neighbors and your boss. While inappropriate and illegal, contacting others to discuss your financial woes is an often used collection tactic. Stop them in their tracks by using debt relief as a shield.
One may consider filing for debt relief under Chapter 7 or Chapter 13 of the Bankruptcy Code for any of the above situations. The goal of Chapter 13 is to reorganize debt and give individuals an opportunity to catch up missed payments and pay off debt over a period of three to five years. If someone desires to save their home due to missed payments this may be a viable option.
The sooner you file bankruptcy the better because an increased number of missed mortgage payments increase the amount of funds that must be paid over to the Chapter 13 Trustee to cure the arrearages. Additionally, once the mortgage company starts the foreclosure process, you subject yourself to additional fees and costs, such as attorneys' fees which can be several thousand additional dollars. Even if you file bankruptcy, these costs will have to be paid.
Filing bankruptcy will stop collection calls from the mortgage company and the foreclosure process. It will stop the accumulation of fees on past due payments. In essence, bankruptcy allows you to "start over" with the mortgage company. As long as you can afford to make your mortgage payment and have sufficient disposable income to pay over to the Trustee you will be able to maintain your home.
If these stories describe your situation, please feel free to contact our office for a free consultation with one of our attorneys. We will be happy to discuss your financial situation in detail and determine if bankruptcy is right for you. Don't trust your financial future to a preparer. Contact an experienced bankruptcy attorney to fully understand how debt relief can provide a fresh financial start.
This article is not intended to be legal advice, but is informational. Denise Brown's Legal Direction can be reached at 502-587-0331, email us at mailto:stopmybills@4realdirection.com or visit our website at http://www.4realdirection.com/ and http://www.4realdirection.com/.
