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Stay up to date with all the latest changes to the bankruptcy law with Justin M. Myers Blog. If you are facing bankruptcy or foreclosure and need to file Chapter 7 or 13,Salt Lake City Justin M. Myers Attorney can help you
Most of us have had financial troubles at least once, it’s a natural part of the ebb and flow of life. Nevertheless, there are options to alleviate the financial burden no matter how terrible your situation is.
Ask any financial expert or Salt Lake City chapter 13 bankruptcy attorney out there, and they will tell you that one of the best options is to file for Chapter 13 bankruptcy. But what can this type of bankruptcy do to your financial situation?
Or, if you’re facing foreclosure and could lose your property, let’s answer the question “will chapter 13 bankruptcy stop foreclosure?” Well, we have both good and bad news.
Does chapter 13 bankruptcy stop foreclosure?
Let’s start with the good news, right? If you choose to file for chapter 13 bankruptcy, the risk of losing your property to the bankruptcy trustee disappears. Moreover, this type of bankruptcy does NOT affect your mortgage in any way.
But it’s not all sunshine and roses, our chapter 13 bankruptcy attorneys at JMM Legal warn. The thing is: you could still lose your property, including your home, through foreclosure.
So answering your question, no, chapter 13 bankruptcy does not stop foreclosure. Meaning: bankruptcy filing doesn’t free you from the obligation to make your mortgage payments, and if you want to keep your home, you should be consistent with the payments even during bankruptcy.
But it gets better…
But don’t assume that filing for chapter 13 bankruptcy is useless and does not help you in any way to reduce the risk of losing your home. Our Salt Lake City attorneys say that this type of bankruptcy allows you to make up mortgage arrears.
By contrast, chapter 7 bankruptcy does not let you do that. Better yet, chapter 13 is a good option to avoid foreclosure as it allows you to remove second mortgages and HELOCs. However, you may need legal help from a skilled chapter 13 bankruptcy lawyer to make it work in your case.
How to make mortgage payments during bankruptcy?
If you choose to file for bankruptcy, you will have to make your mortgage payments directly to the mortgage lender. However, there are some cases when a bankruptcy trustee may require you to pay through your bankruptcy plan.
Obviously, however, paying your lender directly is always a more cost-efficient option, our best bankruptcy attorneys in Salt Lake City say. Why? Because the trustee’s fee is based on a percentage of payments made through your chapter 13 plan.
So in order to avoid high trustee fees, make payments directly to the lender. If the trustee prohibits you from paying your lender outside of your plan, speak to an attorney to negotiate a fair deal for you. When you’re dealing with bankruptcy, every dollar matters, which is why saving costs on trustee fees is important.
How to avoid foreclosure when you’re bankrupt?
Under the chapter 13 bankruptcy plan, as we’ve mentioned above, you’re allowed to pay back all of your mortgage arrears by the end of the specified time of the repayment period.
Typically, this translates to up to five years to make up mortgage arrears. To tell you the truth, this is the main reason why Salt Lake City residents facing foreclosure choose chapter 13 over chapter 7 bankruptcy.
However, Chapter 13 bankruptcy can stop foreclosure due to its automatic stay. Our Salt Lake City chapter 13 bankruptcy attorney explains that as long as you stay consistent with your mortgage payments make up mortgage arrears, the risk of losing your home in foreclosure is reduced to zero.
Consult our attorneys at JMM Legal to find out what type of bankruptcy you should choose in your particular case. Let us walk you through the entire list of pros and cons of chapter 13 and chapter 7 bankruptcy plans.
Call our offices at 1-801-505-9679 or complete this contact form to get a free consultation today.
Payday loans have become slightly notorious for encouraging those on low incomes and with poor credit to get into even more financial difficulty, thanks to exorbitant interest rates and the potential of getting into a never-ending cycle of borrowing and repaying constantly. While the model isn’t perfect and has, indeed, lead to increased debt and even bankruptcy for some users, others cite the small dollar loan as being a lifesaver when an emergency situation requires funds that aren’t otherwise available. Whatever your view on small dollar loads, they’re a valuable resource to quite a few Americans, but could soon be forced to come to an end.
Consumer Financial Protection Bureau Moves to Block Payday Loans
The Consumer Financial Protection Bureau recently, and very unexpectedly, announced that it intended to reopen a block payday loans, also known as small dollar loans. These loans, typically amounting to between $100 and $500, carry hefty interest rates and stiff penalties for late repayment, frequently leading to significant debt problems for the low income or unbanked individuals that tend to opt for them.
Should the proposed changes be made law, it’s predicted that a large proportion of lenders offering these loans would be forced out of business, reducing the amount of credit potentially available to people facing expensive emergencies. However, at a typical cost of 15% for a two-week payday loan, it’s easy to see why lending can spiral and bankruptcies can follow. While most people who’ve available of a small dollar loan have said they appreciated the option being available to them, there’s also a valid argument for blocking them. The consumers currently benefitting from these payday loans would, however, then be left without a viable alternative. To offer an argument for keeping payday loans, it has been proven that, in states where small-dollar loans are already prohibited, a lot more people are bouncing checks and missing payments.
It seems, like so many issues we may face in our lives, there’s no simple right or wrong answer to this one.
Financial Difficulty? Salt Lake City Bankruptcy Attorney Can Help
Falling on hard times can be a very difficult experience, in emotional terms as much as financial. As you may have learned the hard way, it can be incredibly easy to get into debt, but significantly more difficult to get out of it. You fall behind on a few payments, creditors start hounding you for money while adding numerous charges that make the balance unpayable… and so the cycle begins.
Salt Lake City bankruptcy attorney Justin M. Myers understands the emotional impact of debt and potential bankruptcy. Don’t shoulder the burden of harassment from creditors by yourself, get some help from a legal professional with extensive experience and a proven track record of success. There are solutions, and this Salt Lake City legal team will work diligently and efficiently to find the best option for you.
To arrange a free consultation and find out how a Salt Lake City bankruptcy attorney could help you tackle that overwhelming debt, call us today on 1-801-505-9679.
Repossession can leave you both financially and emotionally crippled for years, which is why it’s vital to take preventative measures to avoid repossession at all cost.
Our Salt Lake City car repossession attorney at JMM Legal warns that a vehicle repossession remains on your credit report for seven years.
Not to mention that a car repossession results in other negative consequences such as being sued in court and spending an enormous amount of money on the legal battle, having your account turned over to a debt collection agency, and facing a wage garnishment (when your employer will be required to withhold a certain amount in your paychecks to pay off the debt).
While the financial and legal damage of a repossession becomes less severe over time, it is still not something you’d want to joke around with, our best car repossession attorneys in Salt Lake City warn.
What is car repossession?
In order to understand ways to avoid a repossession, let’s figure out what it is. In plain English, repossession means that the lender is reclaiming ownership of the vehicle that has not been paid off by you.
While cars are the most common asset eligible for repossession, the lender could also reclaim ownership of assets such as real estate, property, jewelry, artwork and other assets that could be sold to pay off the unpaid debt balance.
How car repossession works in Salt Lake City
Our repossession attorneys at JMM Legal explain that the lender can reclaim the car as soon as a credit account is delinquent. In fact, the lender of a car loan is not even required to give you notice and can repossess the vehicle tied to the loan if you fail to make the payment in time.
However, our car repossession lawyers warn that there are certain procedures that lenders must follow when repossessing assets. In particular, they cannot “breach the peace” when reclaiming the vehicle. Meaning: using threats or force is not legally acceptable.
Reversing a repossession is almost impossible, which is why it’s highly advised to exhaust all legal means to prevent your vehicle from being seized. “But how?” you may wonder.
Well, our car repossession lawyers at JMM Legal have prepared a guide on how to avoid a repossession in Salt Lake City and other cities of Utah.
How to avoid car repossession?
If your financial situation gets out of hand and you realize that you won’t be able to pay your next payment on a loan, pick up the phone and contact a car repossession attorney right away.
The second step would be to provide the attorney with all relevant information regarding your loan. Your attorney will then reach out to your lender and negotiate a settlement before you miss your first payment.
Representatives from banks or credit unions are people, too. So in order to avoid a repossession, you don’t have to threaten to sue them if they attempt to repossess your property.
Instead, your car repossession attorney will offer them a reasonable proposal and explain to them when the next payment will be made.
You have to understand that, depending on your loan, the lender may react differently to your inability to pay off the debt. That’s why it’s vital to adapt, be proactive and be prepared for any response from your lender.
Some lender is willing to compromise and agree to a payment arrangement plan, others, meanwhile, would be less interested in compromising, and would do whatever it takes to take back the property.
In these cases, you need a skilled car repossession lawyer by your side. Here at JMM Legal, our experienced attorneys are available 24/7 to review your debt situation and help you avoid a repossession by crafting a personalized plan for you.
Consult our Salt Lake City vehicle repossession attorneys to find out your best course of action. Call JMM Legal at 1-801-505-9679 or complete this contact form.
If you’re a business owner going through a rough time, you’ve probably considered filing for bankruptcy to save your business and assets. But there has been no one around to either encourage or discourage you to go with one of the bankruptcy options for small businesses.
Besides, what’s the difference between Chapter 7 vs 11 vs 13 Bankruptcy anyway? Today, our best bankruptcy attorney in Salt Lake City – Justin M. Myers – is going to answer your burning questions about business bankruptcy.
How to file for bankruptcy (and how NOT to)
You’ve probably heard about the ongoing scandal brewing over Breitburn Energy Partners LP’s bankruptcy, which the oil producer giant filed for in 2016. Shareholders of the company, which has been bankrupt for over 18 months, are taking legal action to prevent the company from obliterating their investment and feeding them with a large tax bill as crude prices continue to rise.
Breitburn, which filed for Chapter 11 bankruptcy protection after oil prices had collapsed to below $30 a barrel from over $100 in 2014, is being accused of using a “scheme” to hand out their assets to creditors while hurting the bankrupt company’s stakeholders in the process.
Clearly, something was wrong with Breitburn’s bankruptcy strategy, and now bankruptcy attorneys on both sides are trying to figure out the best way out.
Our Salt Lake City bankruptcy lawyers at JMM Legal are going to review three bankruptcy options for business owners in Utah and all across the nation to prevent you from landing in legal trouble similar to what Breitburn is now facing.
Bankruptcy options for business owners in Utah
The choice to file for bankruptcy as a business owner never comes easy. It takes weeks of Googling, consulting bankruptcy lawyers, talking to creditors and your bank, and the while learning thousands of new legal and banking terms and getting more confused every day.
But it doesn’t have to be that complicated when you have an experienced bankruptcy attorney by your side who would lay out a viable bankruptcy plan to save your business and prevent you from losing all your hard-earned assets.
As a start, let’s review the three bankruptcy options for sole proprietors (business owners) in Salt Lake City and elsewhere in Utah.
Note: if you’re the sole proprietor of your business, the business is not considered a separate entity. Meaning: creditors don’t differentiate between you and your business, which means you’re responsible for its debts.
What it means for you when filing for bankruptcy as a business owner is that your claim must include both your personal and business debts and assets, our bankruptcy attorneys at JMM Legal say.
Chapter 7 Bankruptcy vs Chapter 13 or 11 Bankruptcy
What’s the difference between Chapter 7 Bankruptcy vs Chapter 13 or 11 Bankruptcy, you may be wondering?
If you’re filing for Chapter 7 Bankruptcy as a sole proprietor, its major advantage is that your business and personal debts will be wiped out without obliging you to make regular payments for a specified number of months or years.
Note: not all types of debts are being discharged when filing for Chapter 7 Bankruptcy. Consult our Salt Lake City bankruptcy lawyers to find out whether or not all of your debts would be wiped out after filing for Chapter 7.
Besides, when filing for Chapter 7 Bankruptcy, all of your assets – both business and personal –will immediately become the property of the bankruptcy estate. There are also the so-called exempt assets that you’re allowed keep and use in certain cases.
Our bankruptcy attorneys at JMM Legal conclude: filing for Chapter 7 Bankruptcy is a good option if you don’t have much property. If you have a huge estate, on the other hand, think twice before filing for Chapter 7, as your most essential assets could be lost.
Filing for Chapter 13 Bankruptcy as a business owner (or Chapter 11 if your debts exceed those that are permitted under Chapter 13), meanwhile, is your best option if you want to keep your business up and running while being bankrupt.
Note: in order to file for Chapter 13 or 11 Bankruptcy, you will be required to have enough monthly income to be able to make payments every month (those payments, however, will be much smaller than your current payments).
Consult our Salt Lake City bankruptcy attorneys to find out which bankruptcy option would be best for your particular business and your particular situation. Let our experienced attorneys walk you through bankruptcy laws and give you A-to-Z pros and cons of each bankruptcy option.
Feeling overwhelmed by debt isn’t an uncommon occurrence, plenty of people both here in Salt Lake City and beyond, have been there for various reasons. If you currently feel like you’re out of your depth and are barely treading water, you may be considering bankruptcy as a possible solution. As an experienced attorney will tell you, Chapter 13 bankruptcy can be a far less painful option that you may think.
Is Chapter 13 Bankruptcy a Good Option for Me?
Chapter 13 bankruptcy may be appropriate if you’re struggling with immediate demands for payments, rather than a lack of income per se. You may think that bankruptcy involves hitting rock bottom financially, but that’s not always the case. With Chapter 13 bankruptcy, you can get a little breathing space from creditors’ calls and letters, while using your disposable income to reduce unsecured debts. Another great feature of Chapter 13 bankruptcy is that you may even be able to keep your house, assuming you’re able to keep up with mortgage payments under your settlement plan. As financial circumstances can vary hugely from person to person, a Salt Lake City Chapter 13 bankruptcy attorney can advise if this is a suitable route out of your debt.
Although your lawyer will explain in more detail how your case will proceed, Chapter 13 bankruptcy generally involves:
3 to 5 years to pay off your unsecured debts using disposable income
Opportunity to catch up on missed mortgage payments, and continue paying through a settlement plan
Supervision of a court-appointed trustee, who’ll take charge of your payments
Safeguard your assets against repossession or foreclosure. Any proceedings currently in motion will be halted when you file for Chapter 13 bankruptcy
To qualify for Chapter 13 bankruptcy, you must have no more than $394,725 in unsecured debts and/or $1,184,200 secured debt. You must also:
Not have unsuccessfully filed for bankruptcy in the past 180 days due to unwillingness to appear in court
Agree to start credit counseling with an approved provider within 180 days
Propose a repayment plan
Work with a trustee, who takes responsibility for your payments to creditors
Not work as a stockbroker, commodity broker, or be filing as a business or sole proprietor
Why Is Chapter 13 Bankruptcy the Best Option to Eliminate Debts?
If you’re one of the Salt Lake City residents struggling with debt, your first step should involve contacting an experienced Chapter 13 bankruptcy attorney for advice. Your lawyer can give you a free evaluation, as well as an estimate of the costs involved in filing for bankruptcy. You can expect to pay $235 filing fee to the bankruptcy court, plus $75 miscellaneous admin fee.
The information you’ll need to provide to your Chapter 13 bankruptcy attorney includes:
A full list of all creditors, as well as the current amount owed to them
Full details of your income and where it comes from
Details of any property you own
Any contracts or leases which exist in your name
An accurate record of your monthly outgoings and expenses
Your most recent federal tax bill, along with details of any unpaid taxes owing. You must be able to prove your taxes are in order for the past four years
Not all forms of debt can be cleared with bankruptcy, including Chapter 13. You’ll still be liable for any student debt, unpaid taxes, child support, or alimony payments.
When you attend your consultation with an experienced Salt Lake City Chapter 13 bankruptcy attorney, the full process will be explained clearly, and you can rest assured that we will do our utmost to guide you through it as smoothly as possible.
Bankruptcy is one of the most stressful periods of any person’s life whether you’re based in Utah or California.
And while bankruptcy makes you financially exhausted, it also does tremendous damage to your credit score. A bad credit history, in turn, prevents you from obtaining credit and getting good rates.
Luckily for you, our Salt Lake City bankruptcy attorneys at Justin M. Myers, Attorney-at-Law, LLC know how to help you rebuild your credit after bankruptcy through a combination of healthy financial habits.
Guide: how to rebuild your credit after bankruptcy
Be consistent for a long period of time. Better yet, be consistent with your finances always. Pay your bills on time and, if you have any credit obligations, address them in a timely manner.
Keep in mind that delinquencies (a missed payment of one month) stay on your credit report for seven years before going away.
Analyze your credit report. When reviewing your credit report, set realistic goals about rebuilding credit after bankruptcy. Aim to get a score of at least over 700, but reaching the “excellent” score of 750-850 is obviously a priority.
Consult an experienced bankruptcy attorney to set up a customized plan of rebuilding your credit to reach the excellent score of 750-850 as soon as possible.
Dispute any incorrect or inconsistent info on your credit report. Seek the legal advice of a Salt Lake City bankruptcy lawyer to dispute any incorrect information that appears on your credit report, for example paid debts that are listed as unpaid.
Be smart about your budget. It’s essential to know exactly how much money you make in a month and how much you spend each month. Budgeting allows you to be consistent about creating savings and reducing non-essential expenses (the holidays are over, so many non-essential expenses can be eliminated).
Being smart about your budget also allows you to be consistent with on-time bill payments and be able to pay for unexpected bills in emergency situations. Speaking of on-time bill payments…
Pay your bills on time. There’s not much to say about this one other than warning you that a payment history accounts for more than a third of your credit score.
Put a little bit away in savings. Generally, it is advised to put between 5 and 10 percent of your monthly income away in savings, but saving any amount is always a good idea (this helps avoid using credit in case an expected expense comes up).
Fact: studies show that having as little as $250 in savings can be enough to protect you from resorting to credit in case of emergency.
Get a new checking and savings account. Our bankruptcy attorneys at Justin M. Myers, Attorney-at-Law, LLC advise people recovering from bankruptcy to open a checking and a savings account at a local bank or credit union (consider the interest rates and fees before opening accounts).
You need a secured credit card. You may want to avoid using debit cards when rebuilding credit after bankruptcy, as these cards take money straight from your bank account. Using a secured credit card, on the other hand, is credit-friendly as it allows you to borrow money and pay it over time.
Pay off the balance every month. Failing to pay off your balance regularly can negatively affect your credit score.
Stay away from finance companies. It may be tempting to get help from finance companies, but our bankruptcy attorneys advise you to avoid them. After all, these companies only help you to make a profit at your expense.
If you feel as if going through it alone is challenging and you need guidance in rebuilding your credit after bankruptcy, reach out to one of our best Salt Lake City bankruptcy attorneys to get a personalized plan about budgeting, savings and maintaining a good credit score.
Call the offices of Justin M. Myers, Attorney-at-Law, LLC at 1-801-505-9679 or complete this contact form to get a free initial consultation.
The holiday season is one of the most joyful times of year… but not if you’re unable to pay off debt.
In fact, the holidays may become as stressful as ever when you’re trying to enjoy the holiday season with your family but your phone keeps ringing off the hook with creditors demanding your to pay off credit card loans, or bank representatives in black suits knocking on your door.
That isn’t exactly the most fun experience one can have during the holidays, the time of year when you’re supposed to buy Christmas presents for your family and friends, decorate your home, and buy loads of food… It all costs money!
But can creditors actually give you break during the holidays? Our Salt Lake City bankruptcy attorneyJustin M. Myers says that there’s a way to make even the most annoying lenders stop bothering you with their calls and visits.
In order to avoid severe financial damage for not paying off your debt – and make the holidays more joyful and stress-free – our bankruptcy lawyers have outlined a plan: what to say to creditors so that they give you break.
Pick up the phone and make that call
Identify the right person within the bank or company that provided you with the loan, and reach out to them. That person must have the authority to make changes to your current debt plan and bank account, our attorneys at Justin M. Myers, Attorney-at-Law, LLC warn.
It’s essential to maintain a two-way and calm conversation when speaking to a creditor on the phone. Don’t forget that he/she is just a regular person, not some bank-operated robot trying to rip you off.
You need to make sure that your proposal is mutually acceptable. Also, be willing to compromise. After all, you’ll have to negotiate a plan that would ease your debt burden and make creditors stop bothering you during the holidays.
Listen to what you’re being told on the phone, and never get aggressive. Never threaten or yell at the person on the phone. Better yet, it’s advised to be legally represented by a bankruptcy attorney to take care of the call for you.
After all, you have personal feelings and emotions attached to your debt, so negotiating may be tough for you when creditors start throwing around confusing legal and baking terms at you.
Let an experienced bankruptcy lawyer take care of the call and find a solution that would satisfy your needs and goals. If you’re planning to have stress-free holidays while embroiled in debt crisis, being legally represented by a lawyer is probably the best thing you can do.
Have precise figures
When speaking to creditors, it’s essential to give precise figures and timelines about your current financial situation. No lender likes to speak to investees who are trying to feed them promises and approximates with a teaspoon.
Have your precise monthly expenses and your total income listed in front of you. Think when you might be able to restart normal account activity to start paying off the debt. Be realistic about your plans.
Take into consideration all factors, including holiday expenses and work-related struggles. Also, explaining your problem is just as important. Keep in mind that you’re speaking to people. Regular people, just like you.
However, knowing your rights and responsibilities as a credit card holder as well as Salt Lake City laws regulating banking activity is just as essential during negotiations with your creditors.
That’s why it’s highly recommended to hire a Salt Lake City bankruptcy attorney who would represent you in your best interests and make creditors stop bothering you with calls and visits during the holidays.
Consult our attorneys at Justin M. Myers, Attorney-at-Law, LLC to know all the legal options available in your particular case. Call our offices at 1-801-505-9679 or complete this contact form for a free case evaluation.
It is the worst sound in the world. For countless people in Utah, the constant sound of their telephone ringing from creditors is enough to drive anyone crazy. Avoiding your phone is no way to live and neither is the helpless feeling of debt. Rather than go through a stressful holiday season, there are some solutions to help put an end to the calls and go on with your life. The first important step is to get help. The worst mistake many people in debt make is hoping the phone calls go away on their own. One of the best places to start is to seek advice from an experienced and knowledgeable Salt Lake City bankruptcy attorney.
Know Your Rights!
One of the important jobs of an attorney is to educate clients about their rights. Creditors often try to intimidate those in debt by using scare tactics. However, many of these tactics are illegal. By knowing your rights, it can often make the difference between resolving your debt issues or allowing the problem to get worse. There are laws already in place designed to protect consumers from creditor harassment. For example, creditors are not allowed to call your home before 8 am or after 9 pm. They are also now allowed to talk to your employer or any other members of your family. To put a stop to the calls, simply tell the creditor to stop. In addition, make sure you follow up with a certified letter detailing the specific information you gave to the creditor.
Get To Know The Fair Debt Collections Practices Act
One of the most important laws designed to protect consumers from creditor harassment is the Fair Debt Collections Practices Act. The law contains a series of provisions that specifically address when creditors can call, what they are permitted to say and how often they are allowed to speak to those in debt. The Fair Debt Collections Practices Act prohibits the following.
Using deceptive language or conduct
Calling people repeatedly
Calling people at their workplace
Calling people at unreasonable hours
Discussing your debt problems with members of your family, friend, neighbors of employers
Publish your name
Make threats of taking away child custody, welfare benefits or to have you arrested
Using derogatory, obscene and insulting language
Failing to provide the collector’s correct identity
Threatening to make an unauthorized repossession
Contacting a person in debt who is already represented by an attorney
Are You The Victims of Creditor Harassment? Salt Lake City Bankruptcy Attorney Justin M. Myers Can Help
Dealing with debt is already a complicated process. But it can become even more stressful with the constant harassment from creditors. Fortunately, there are solutions. It begins with hiring a legal professional with a track record of protecting the rights of each client and looking after their best interests. Salt Lake City bankruptcy attorney Justin M. Myers understands the challenges and obstacles of those struggling in debt. He and his legal team utilize a personable and comprehensive approach to help clients resolve their debt problems as quickly and smoothly as possible. Whether you are seeking to file for Chapter 7 or Chapter 13 bankruptcy, he and his staff can help you navigate effectively through the legal process. To learn more, contact their Salt Lake City law office today and schedule a consultation to discuss your case.
Homeownership has long been considered the American Dream. But it can quickly turn into a nightmare when faced with a foreclosure. The sad reality is it can happen to anyone. The loss of a job, a divorce or mounting medical bills can place anyone in a difficult financial position. Once you fall deeper into debt, it can seem almost impossible to make your mortgage payments. Unfortunately, there are countless homeowners in Salt Lake City in the dire predicament of losing their home. For many, desperate times can bring desperate measures. Although it can be easy to panic, there are viable solutions. The first step, is to seek advice from an experienced and knowledgeable foreclosure defense attorney.
Apply for Loan Modification
Your attorney can provide a number of viable options to help resolve your mortgage issues. One of the most effective is to apply for a loan modification. Federal and state laws prohibit lenders from proceeding with the foreclosure process during a loan modification review. It also gives homeowners the opportunity to buy some extra time. During the loan modification process, the lender will seek to adjust the terms of your home loan. The ideal results are lower payments and a more affordable mortgage. A foreclosure defense attorney can help clients enroll in an appropriate Making Home Affordable Program (MHA). These government programs are designed to help lower monthly payments or find alternative methods out of your present mortgage loan. Because loan modifications require significant documentation, it is best to have a foreclosure defense attorney to provide assistance.
File For Bankruptcy
Another effective solution to stop a foreclosure is to file for bankruptcy. Depending on your income or ability to pay off your debt, you may be eligible for either Chapter 7 or Chapter 13 bankruptcy.Once a homeowner files for bankruptcy, lenders are required to stop the foreclosure process. The lender can make an appeal to the court. However, it could take one to two months.
Apply For Short Sale
Many who struggle with crippling debt have few options. If you have long term financial problems and there is little hope of keeping your home, you may want to apply for short sale with your lender. Keep in mind, this option is only viable if owe more than your home is worth. Before you can begin the process, a short sale must be approved by the lender. To get approved, homeowners must prove their income is too low to afford their current mortgage or they are subjected to a mandatory job relocation.
Are You in Danger of Losing Your Home? Salt Lake City Foreclosure Defense Attorney Justin M. Myers Can Help
There are few things more devastating than losing your home. If you have accumulated overwhelming debt, it can seem like an impossible situation. But there are solutions. Over the years, Salt Lake City foreclosure attorneyJustin M. Myers has helped protect the rights of homeowners by providing effective debt relief solutions. He and his legal staff utilize an aggressive and comprehensive approach to help place homeowners in the best position to succeed. To learn more, contact his Salt Lake City law office today and schedule a free initial consultation to discuss your case.
When it comes to eliminating debt, there are no easy answers. From Draper to Salt Lake City, countless people throughout Utah struggle each day to pay their bills, mortgage, and car payments. For many, the best solution is to file for bankruptcy. But there is often one major roadblock. Many people are worried about their credit score plummeting after they file for bankruptcy. It is a legitimate concern.
Why Your Credit Score is Important
Maintaining good credit is vital for your financial health. Your credit score plays a major role on some of your most important transactions. It can often determine whether you can purchase a house, a car or even get a job. Unfortunately, many people avoid filing for bankruptcy because they believe it will permanently damage their credit rating. Although bankruptcy will hurt your credit score. It still may be worth the risk.
How Filing For Bankruptcy Impacts Your Credit Score
Ask any Salt Lake City bankruptcy attorney and they will tell you it is impossible to determine how far your credit score drop after bankruptcy. But it is important to understand there will be a noticeable difference. Much of the impact is based on your current credit and the information on your credit report. Back in 2010, FICO published a report on how bankruptcy and other credit mistakes can affect a person’s credit rating. The report used examples of two different profiles. According to FICO, filing for bankruptcy can cost a person up to 240 points for someone with a credit score of 780 and 150 points with someone with a 680 credit score. Numbers can be somewhat deceiving. Although the person with the higher credit score loses more points, in the end, both people would end up with similar scores ranging from 530 to 540. It is important to keep in mind this is strictly an example. If you are planning to file for bankruptcy in Salt Lake City, your score may not drop as much or could drop more. Nobody knows until the process is actually complete.
Not All Types of Bankruptcy Are The Same
Bankruptcy is broad term for the process of resolving a person’s debt and helping them get a fresh start on their finances. But not all types of bankruptcy are the same. Chapter 7 bankruptcy involves eliminating debt through the liquidation of assets. The benefit of Chapter 7 bankruptcy is the process is relatively quick, usually taking a few months. However, not everybody may qualify for Chapter 7. If your income is too high, you may be eligible for Chapter 13. Unlike Chapter 7, it does not involve the liquidation of any assets. Instead, Chapter 13 bankruptcy allows people to resolve their debt through a payment plan. The process usually takes between three to five years.
Are You Seeking Debt Relief Solutions? Salt Lake City Bankruptcy Attorney Justin M. Myers Can Help
When you are struggling with debt, it can be a helpless feeling. Fortunately, there are solutions. Over the years, Salt Lake City bankruptcy attorney Justin M. Myers has helped many hard working and responsible people resolve their debt issues and regain their financial footing. Whether you are looking to file for Chapter 7 or Chapter 13 bankruptcy, he and his legal staff can help you get started. To learn more, contact Justin M. Myers Attorney at Law, LLC and schedule a consultation to discuss your case.