Clever Ways to Get out of Debt: Chapter 13 & Loan Modifications

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When struggling to get out of debt, some people don’t realize that there are some clever ways to solve their debt problem. For example, in a Colorado Chapter 13 bankruptcy, someone can remove a second mortgage pay back income taxes to the IRS without penalties and interest, refinance cars by removing the negative equity, and obtaining a loan modificaiton

Colorado Chapter 13 bankruptcy has a few “tricks”. First, Colorado Chapter 13 bankruptcy is a way to eliminate a second mortgage. If you own a home that is worth $225,000 with a first mortgage of $250,000 and a second mortgage of $75,000, the second mortgage of $75,000 can be removed. During the last recession, this legal remedy was employed by thousands of homeowners whose homes were “underwater”. Before you feel guilty about it, remember, this practice is permissible under federal law. The process only works if the value of your home is worth less than the balance of your first mortgage. If your home is worth $251,000, you would not be able to remove the second mortgage.

Colorado Chapter 13 bankruptcy allows you to repay taxes without accruing future interest and penalties. Some taxes are dischargeable, which we’ll discuss later, but taxes from the last three years typically need to be repaid. A Colorado Chapter 13 bankruptcy is a way to pay your tax debt without incurring future penalties or interest. Again, the savings can be huge.

Another benefit of Colorado Chapter 13 bankruptcy is the ability to refinance cars. Financing cars is generally a poor financial decision because you’re paying interest on an asset that depreciates. As a result, you are likely to owe more to the bank than what the car is worth. Colorado Chapter 13 bankruptcy allows a debtor to refinance a car to repay what the asset is worth instead of what is owed. Assume you have a car worth $7,500 and owe $14,000. Under Colorado Chapter 13 bankruptcy, you can pay off the car at $7,500 instead of $14,000. You can also lower your interest rate. I’ve been able to help my clients reduce interest rates from 24% to 5% under a Colorado Chapter 13 bankruptcy. That is a huge savings.

One final benefit of a Colorado Chapter 13 bankruptcy is that you can qualify for a loan modification. A loan modification is a program that allows homeowners to lower their mortgage payment to 31% or less of their gross monthly income. The program suddenly gave hope to homeowners struggling to make mortgage payments or facing foreclosure.

A loan modification involves your lender modifying your existing mortgage payment to make it affordable. A loan modification can change the interest rate, restructure the term of the loan, and remove delinquent fees. A loan modification also allows an adjustable rate mortgage to be converted into a fixed interest rate loan.

The primary focus of a loan modification is reducing monthly payments to 31% or less of a person’s gross monthly income. For example, if your gross monthly income is $5,000 per month, then your mortgage payments should be $1,550 per month or less. If your mortgage consumes a higher percentage of your income, the goal of a loan modification is to reduce your monthly mortgage payment.

A loan modification is not available to someone who just wants to lower his monthly mortgage payment. The homeowner must show proof of financial hardship that warrants a modification, such as a pending foreclosure, bankruptcy, etc. Once the application is received, the mortgage company will evaluate the homeowner’s income, debt, and hardship eligibility criteria.

The best proof of financial hardship is by filing Colorado Chapter 13 bankruptcy or missing mortgage payments as this demonstrates the home may no longer be affordable. Such hardship can be caused by job loss, loan payment increase, decrease in income, divorce, medical expenses, etc. However, you don’t have to file Colorado Chapter 13 bankruptcy in order to qualify for a loan modification.

Loan modifications are all the rage today and probably won’t be a long-term solution though. If it’s an option for you today, then take advantage of the opportunity now as there are some great benefits to obtaining a loan modification.

If you want to find some clever ways to get out of debt such as filing Colorado Chapter 13 bankruptcy or obtaining a loan modification, then call Heupel Law to schedule a FREE consultation at (303) 955-7570. Heupel Law is located at 2440 Stout Street, Denver, CO, 80205. For more information about Heupel Law, visit www.HeupelLaw.com or watch this video again: http://youtu.be/Xu6A1BwW6xs

What Happens to Unsecured Debt in Chapter 13, Clever Ways to Get out of Debt: Chapter 13 & Loan Modifications.

Home Loans – Take Advantage Of Your Assets And Live Financial Obligation Free

This is an extremely useful way to stay out of credit card financial obligation. Getting out of Revolving Debt has been rather a lesson in humbleness, hasn’t it. Charge card are a sure way to financial worries.

Clever Ways to Get out of Debt: Chapter 13 & Loan Modifications, Get most searched high definition online streaming videos about What Happens to Unsecured Debt in Chapter 13.

Secured Debt Combination Loan – Assistance Make Your Life Debt-Free

The strategy reveals that all your unSecured Secured Debt will be paid off in 36 months. Answering this really depends upon each individual situation. You have actually got to put a freeze on your costs.

It’s a reality – excellent people have bad financial obligation. And great deals of it – the average American family carries about $8,000 in charge card financial obligation alone. We hold a total of $1.9773 trillion (yes, that’s a trillion, a thousand billion!) of customer financial obligation – $18,654 per family. And, 44% of us invest more than we make. Cinema TVs, the newest in clothes and suppers out – 4.2 meals each week – aid contribute to this debt. If you are part of the debt crowd, you might already be wondering how to cure your financial obligation issue. What can you do to reduce financial obligation? I’ll reveal you 3 basic, yet efficient, ways to start trying those high balances – today.

The 2nd thing that a financial obligation settlement company will look at is how much unSecured Debt you currently have. For the most part, you will qualify if you owe over $10,000 dollars in debt. They will not consider Secured Debt since secured financial obligation can not be settled. This is because the financial institution of financial obligation always has the choice of reclaiming the item used as collateral and auctioning it off to collect that debt. This, naturally, isn’t the case with unsecured financial obligations.

Borrowers with bad credit can also get these loans considering that there is a property connected to the loan. By removing all the financial obligations with the assistance of the loans, borrower can enhance the credit rating.

A fine example of this remains in the real estate market. With the fall of the marketplace many people owe more on their house than its worth. Since you would not make a revenue on your home by offering it, this makes it bad if you are attempting to sell. Being familiar with what you owe to business will get you started on your Debt Free life. Just after you understand what you owe can you make a spending plan to fit what you need monthly. Following a spending plan is very difficult in the beginning since you still want things and this will not remain in your budget. Some things have to be paid every month no matter what. You still require your electrical power and gas to live in your home. You sure don’t desire to stop making your house payment. You would end up with not having a place to live and this will not help your circumstance.

To avoid Revolving Debt altogether, or to dig yourself out of a hole if you have actually already overspent your limitations, you require to reduce the number of cards you bring. Making minimum month-to-month payments will not get you anywhere. You’ll require to triple or double your minimum payments to make headway. Settle your lower balances first to get them out of the method. Then your resources can go into dealing with the greater balances. As soon as your cards are settled, you can decide which ones you truly require, and cancel the rest.

There are numerous reasons for this. In the last few years, you can blame your financial issues on the unexpected economic recession. A great deal of consumers were left not able to pay off their financial obligations due to the fact that they were laid off from their very long time tasks. Some customers get so deep in debt since of an unexpected disease. Another reason is excessive costs.

Understanding the options that are available to you is vital prior to you engage in financial obligation combination. Getting a home equity loan to pay off your credit cards suggests creating a second home mortgage on your home. Even with the finest of intents, this can develop a devastating scenario unless very thoroughly handled. If you have problem paying the new financial obligation, as you had problem paying the old ones, the consequences are much higher. If you’re considering it, reconsider!

Being debt totally free appears to be simply beyond the reach of Americans today. It simply means they might try to charge you high rates and never get your financial obligation lowered.

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