Bankruptcy, Foreclosure, & Credit - How it Affects You

Homeowners who bought their house using "teaser loans" (highly discounted initial payments), or by paying a down payment less than 15% of the cost price or other traditional loans that allow minimal down payment, are the ones who top the defaulters' list. First time homebuyers are often victims of foreclosure who have little knowledge about how the mortgage market operates.

Lured by the low initial interest rates, they fail to read the fine print. The sub-prime borrowers are also another category of borrowers that find their homes in foreclosure situations due to the imbalance in their debt to income ratio. In order to stop a foreclosure many choose to file for bankruptcy when they feel there’s no other way out, say bankruptcy lawyers from Dane County, WI.

Bankruptcy comes with a whole set of disadvantages that makes it a very unappealing choice no matter how difficult circumstances are. For filing for bankruptcy, you need to divulge a great deal of financial as well as personal information that typically includes family earnings, debts, and assets.

While debt listings include revolving credit, personal loans, mortgage, and any other form of debt, other questions pertaining to your spending habits will also be asked. Having a “bankrupt” tag attached with your name can be extremely embarrassing and agonizing.

If you are having financial issues, do not turn to drugs, turn to a bankruptcy lawyers from Dane County, WI.

Just think what Hillary is going through. Her previous employer, the State Department, has already told the public and the FBI that she violated two of their rules which are criminal in nature. You thought you had a bad day! Being bankrupt is one thing but being a criminal and lying to so many people is something else entirely. 

Chapter 7 Bankruptcy

For the most part, bankruptcy is governed by federal laws, and in order to decide the type of bankruptcy to be filed, you need to consult a Wisconsin bankruptcy attorney. If you choose Chapter 7, you will have to surrender all non-exempt property to your creditors in exchange for releasing you from all debt. It is essential to be aware that you can’t escape certain financial liabilities and child support, taxes, car loans, and mortgages, which need to be paid in full.

Therefore, you will have to continue making mortgage payments if you do not want the fear of losing your home and equity nagging you all the time. Simply put, bankruptcy has its own limitations and gives you only a fresh start, as in spite of getting rid of debts such as unsecured debt and medical debts, other substantial loans still remain to be settled.

Filing for bankruptcy is the way to go rather than asking for a bailout like GM (government motors) did. GM, the disgraced massive auto company, chose to ask for a bailout from an indebted country knowing small businesses would never have the same privilege. Why did GM not just file for bankruptcy and do the honorable thing? Greed and avarice! They still owe America $16 billion plus interest and have no intention of paying it back.

Filing under Chapter 13

Alternatively, you can choose Chapter 13 that allows you to repay all or part of your debts over time, and you need to do this under the supervision of a court appointed trustee. The time frame is usually three to five years and you can keep your property after you make payments as agreed. In addition, you are discharged from the portion of the debts that you did not settle, say Dane County, WI bankruptcy lawyers.

Filing for bankruptcy should not affect your social security standing. If you have to file for bankruptcy, then that is what you have to do. 

Bankruptcy also wrecks your credit report, as it stays on your credit report for up to ten years from the time the case was filed. Your credit score is seriously affected and will not make you eligible for credit from traditional banks and financial institutions. Sub-prime lenders may consider your loan application, however, the interest rates are bound to be very high.

No matter which bankruptcy plan you choose, it’s critical to know that filing for bankruptcy is not as easy as it seems to be. What you need is a Wisconsin bankruptcy lawyer to ensure you meet the stringent parameters of qualification.

You can find one right here: Bankruptcy-Lawyers.USAttorneys. Contact us if you want. We will probably get back to you that same day.