By Legal Helpers

One of the most debilitating things someone can go through is filing for bankruptcy. No one thinks this possible could happen to them until reality sets in and bankruptcy is the last resort. This usually happens when someone is unable to keep up with their financial obligations such as car loans or credit card payments. Not only is it rough on the debtor (or the person who owes the money) but it is hard on the creditor as well (the person, business or municipality to which the money is owed).

While it is usually the debtor who files for bankruptcy, there are the rare occasions when the creditor might do so. This is called involuntary bankruptcy and generally occurs when the creditor is owed a very large sum of money. Creditors have little comfort when trying to collect debts, and therefore are somewhat relieved when someone files for bankruptcy because, no matter how long it might take, they will get their money back.

When someone files for Chapter 7 bankruptcy, their assets are combined and then doled out to the creditors. This form of instant gratification is most favored by creditors since they get their money up front. However, when the debtor files for Chapter 13, the creditors are receiving money on a fixed payment schedule. It may take longer to collect what is owed, but they will get the money. In these cases, bankruptcy creditors are almost like loan sharks; they are always trying to get their money. On the other hand, bankruptcy is frowned down upon by creditors because they are afraid they will never get paid.

The Chapter 7 bankruptcy process is the easiest of all such processes. Its often referred to as straight bankruptcy. Chapter 7 is a total liquidation process. The debtor will turn over all non-exempt property to the trustee who then will convert it to cash for distribution to the creditors. The debtor will receive a discharge on all debts usually within 4 months. In the vast majority of these cases the debtor has no assets that he would lose so Chapter 7 will give that person a relatively new fresh start at life again.

The following reasons are the most common for filing bankruptcy:

Unemployment

Large medical expenses

Seriously overextended credit

Marital problems

A recent academic study reported that medical bills caused half of bankruptcies in the United States.

Chapter 7 will erase all but the following debts for a person proceeding through this process:

Child support and alimony

Personal injury

Student Loans

Income tax debt.

There has been much recent controversy surrounding the new bankruptcy laws, and especially the means test. The simple truth is that there are more requirements under the new laws and the unfortunate result of some people required filing chapter 13 instead of Chapter 7. However, for the vast majority of filers Chapter 7 is still be available with actually little extra effort. A qualified and experienced bankruptcy attorney will be able to assist a person through the Chapter 7 filing process and all the other tests and requirements in the new bankruptcy law.

About the Author: Legal Helpers is a debt relief agency helping people to file for bankruptcy relief under the bankruptcy code. We’re one of the largest consumer bankruptcy firms.

Bankruptcy attorneys

answer the phones six days a week and evenings.

Source:

isnare.com

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By P Shukla

Are you or a friend or family member in a real state of panic over a mortgage payment out of control and out of your ability to pay? Is foreclosure a very real possibility that robs you of sleep and peace of mind every single day? If so, you need to know about a scheme to sell and rent back your own home that is legitimate and legal and that may be just the answer you need.

The houses involved in rent back plans usually have difficulties stemming from flexible or adjustable interest rates on their mortgages. These allowed for rock-bottom down payments up front and made it possible for a great number of purchasers to get qualified and buy property. It was believed that these people would see continuous salary increases over the years and would find the increased monthly charges affordable as the interest increased.

A problem arose when mortgage rates increased faster than people’s incomes, and they would fail to keep up with monthly payments. More and more property owners were faced with foreclosures and repossessions, without much relief from the government. To avoid eviction, owners under pressure found a way to sell and rent back. This way they could eventually own their homes again.

If you decide to enter a sell and rent back arrangement, here is what must be done. Before anything else, you must find a financial institution that deals in this type of contract, one that will accept you as a client and purchase your house. This can take some time, because you need to deal with an institution that is reliable and has good ratings.

Next, according to the terms of your contract to sell and rent back you will make a deposit like any rental in some cases, and will pay a fixed and predictable monthly rent, usually based on local averages, for a set period of time, typically about one year. This may be renegotiated or allow for indexed price changes after the time allowed.

The nice thing about these contracts is that they include a clause that allows you, within a certain number of years, to buy your home back. So, for example, if you find a new loan in the future, you can use it to purchase your home again. You won’t have to move out of your house, and you will even be a homeowner again. That is why anyone having a hard time paying her mortgage should give a sell and rent back plan a serious consideration.

If you are in a real state of panic because you can’t pay your mortgage then you should learn about a legitimate sell and rent back your own home plan. It is legal and may make it possible for you to remain in your home. If you decide to enter a homes for rent back arrangement, here is what must be done. First, you must find a financial institution that deals in this type of contract, one that will accept you as a client and purchase your house. You need to deal with an institution that is reliable and has good ratings.

About the Author: Home owners can

sell and rent back

their house or even

stop repossessions

. Visit today to

sell and buy back

your property

Source:

isnare.com

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