Debt and Bankruptcy

Tons and Tons. Many hard working people are driven to Bankruptcy due to overwhelming medical debt.

This is an unknown amount as this would be listed as an outstanding balance rather than a specific reason, medical costs like any other unsecured debt "could" be one of the reasons people do apply for bankruptcy

Yes, If you are trying to get the vehicle back you can file a Chapter 13. but you have a very short window typically 10 Days to get filed to have much success of getting the vehicle back. Or you may need to file if your window has passed to protect yourself from future liability. The lender will sell the vehicle and if there is a deficient balance will pursuse you for collection of the remaining balance.

Bankruptcy will not prevent you from renewing your insurance license. When your license is renewed, one of the administrative action or sanction questions will cover bankruptcy and require you to answer "yes". This will immediately flag your renewal application to require legal documentation.

After the renewal has been submitted, you or your compliance service provider will need to submit the proper legal documentation about the bankruptcy to the department(s) of insurance for review. Failure to supply the proper documentation can result in the rejection or expiration of the application resulting in license cancellation. The cancellation could then result in fines and administrative actions.

Producers who receive administrative actions, fines, sanctions or file for bankruptcy are required to notify the departments of insurance in all states where they hold active licenses within 30 days. Failure to report these actions may result in further administrative actions including fines and license revocation.

The mortgage company gets the money.

My own home is in foreclosure (I am currently in the process of getting it out) and I can tell you from my own experience what the repercussions I have seen are.

* My credit score is terrible (low 500's). It had been good (700's) before my foreclosure. * I cannot get any loans or credit. * The interest rates on some of my credit cards has jumped significantly. From the research I did, I found estimates that you would not be able to buy another home for 4 to 7 years. It stays on your credit report for at least 7 years.

The repurcussions of foreclosure individually are: 1) your credit report is dramatically lowered, and it will be very difficult to get another mortgage in the future. 2) Even after the lender has foreclosed, they often still have the ability to put a judgment against you, which can lead to garnished wages, and will keep you from being able to purchase other real estate. 3) If the bank does not go after you through a judgment, they must report to the IRS that the they "forgave" the debt (if your house was not worth as much as your mortgage debt), and the IRS considers that to be income, and will tax you on it. But, as of early 2008 (or so), the taxable income (loan forgiven) is non taxable.

Yes. If you are declared bankrupt, the Official Receiver will review your conduct leading up to the bankruptcy. If you have obtained or used credit immediately prior to the bankruptcy, this could be considered fraudulent use and the Official Receiver may apply to Court for a bankruptcy restrictions order against you. Depending on the seriousness of the offence, this could be for a period of up to 15 years. The main restrictions in bankruptcy are; you cannot obtain credit of more than £500, you cannot be a company director and you cannot hold certain public offices, such as the trustee of a charity.

If you allow your home to be foreclosed or if you sign a Deed-in-Lieu of Foreclosure. Home owners will take a hit of about 250 points on their FICO score. This means if a their FICO score before foreclosure was 680, it could dip as low as 430. A home owner who wants to buy another home after foreclosure will end up waiting about 24 months before a lender will offer any kind of interest rate that makes sense. During that time you must have a near perfect credit.

The affect of a short sale on a home owner's credit report is much less damaging. The negative on credit may show up as a pre-foreclosure in redemption status, which will result in a loss of around 80 points from the FICO score. It can also simply show up as the loan was paid off and not affect your score at all. This means a short sale with a previous FICO of 680 could possibly see it fall to around 600 or it could remain the same.

There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure. I would advise looking into this first.

no...the note goes back with the bank...your credit is ruined for five years

Yes, but it may be very difficult for you to determine your own eligibility for a Chapter 7 filing. Attorneys have automated software programs to assist them with this question. Part of the bankruptcy filing paperwork is a form commonly known as the "Chapter 7 Means Test". It is actually about 4 different "tests" grafted together into one form, in a format where you only take the subsequent tests if you "flunk" the previous one. If you "flunk" all of them, you have to check a box on the first page that informs the Court and the Trustee that your Chapter 7 filing is "presumptively abusive" of the bankruptcy code, and the Trustee then has an affirmative duty to seek the dismissal of your case, or its conversion to a Chapter 13 case. This is not to say you are home free once you "pass" the Means Test. Your case can still be dismissed if it is later determined to be abusive of the code despite passing the Means Test. The first test is fairly simple. You just list your gross income. If you are filing jointly with your spouse, you must list both gross incomes. If your gross income is less than the state average for a household of your size, you pass, and you don't have to fill out the rest of the form. I am only familiar with the average annual income levels for Michigan, and, off the top of my head, its about $43,000 for a household of one, and about $51,000 for a household of two, with similar incremental increases for larger households. If you flunk the gross income test, you move on to the next one, which allows you to deduct from gross income your payroll taxes and average living expenses for your region of the country. This might be a little tough to do, although the data exists out there somewhere, maybe on the IRS web site. If you can claim enough deductions in this second test, you might just qualify. The third test allows you do deduct your mortgage payments and car payments, so if you have larger than average car payments and house payments, you might just pass that one. Finally, they have a fourth test which basically tries to figure out if forcing you into a Chapter 13 bankruptcy would yield enough money for your general unsecured creditors to make the time and trouble of a Chapter 13 case worthwhile. You can certainly find a copy of the Means Test form online and plug in some numbers to get an inkling about whether you qualify. So, there is no simple answer to your question. There is no bright-line cut-off point. In my practice it is not unusual for a suburban family of four with two late-model cars and a big house to qualify with a household income of $100,000.

Recently, we have been seeing foreclosures take between six months and a year.

There are solutions, check out www.theroofproject.org The ROOF Project is a nonprofit providing homeowners and tenants FREE government approved help and advice regarding foreclosures.

NOTE: Watch out for SCAMS - You should NEVER be asked to PAY for foreclosure assistance. Check out http://www.loanscamalert.org for more information.

Money is somewhat important but not as important as people think it is. We, as people, need mental support as well as physical support. The mental being just as vital as the other.

Per Dave Ramsey, use the "snowball" method. This is to pay the minimum on all bills and put all you can on the smallest outstanding balance to pay it off quickly. When this item is done, take the allotment and attack the next lowest balance with it. Repeat the process, and as balances are paid off, the dollar amount to apply to the next bill will get larger, and like rolling a snowball into a large ball of snow.

Go to daveramsey.com for web tools, books and find out about Financial Peace University, available across the country, and as an individual course.

An enlightened graduate.

The courts can if the debt wasnt repaid, the only way out is to setle or go bankrupt.

one thousand

7

$14,291,107,345,331 and is still going up!

Appraisers use sales of homes that were made as arms-length transactions where neither the buyer was desperate to buy nor the seller was desperate to sell as a basis for comparing other similar properties in an area. A foreclosure property does not meet these criteria because of the nature of the legal process that the house is undergoing.

Houses in foreclosure are typically classified as distressed properties, which means that there is something wrong with them that induces the owners to sell for less than the fair market value of the property. In some cases, this might mean a condemned house or one that has been severely damaged or fallen into disrepair.

In such cases, the buyers of a distressed house are able to offer the sellers less than what the property would sell for if it was in a fairly decent condition. But these types of houses are also difficult to compare to other houses in the geographic area that are in better condition or where the owners have no added reasons to unload the property.

Foreclosure cases work slightly different compared to a house that is falling apart or damaged, but the lack of time many people have to sell before losing the home to a county sheriff sale indicates that the buyers have the upper hand in negotiating a beneficial price in order to complete the sale before the eviction.

This is one reason that properties in foreclosure often sell for less than their fair market value or the current market value of similar properties, even if there is nothing physically wrong with them. Appraisers know that the sellers may not even have wanted to sell, which can easily skew comparable valuation data.

Properties owned by banks after a foreclosure auction has taken place are little different. In these types of cases, banks may not take care of the houses, or vandals may strip them for any useful resources like copper pipes, for instance. Banks also do not want to own these properties and are often willing to entertain lower offers.

But again, these types of sales are not between a disinterested buyer and a disinterested seller -- in most instances of foreclosure, the seller is willing to unload the property for just enough to make it worth their while. Owners want to sell to save the house and their credit from foreclosure, while banks just want to unload foreclosure properties from their balance sheets.

Thus, foreclosure properties are not good candidates for comparable sales, except for comparing sales of other foreclosed homes. Appraisers would much rather use home sales that were not done under duress, because a certain home was condemned, sales between family members, or foreclosures. The values have too great a tendency to become distorted.

This year, they made a law that you have to wait eight years.

The tax lien foreclosure process is a great form of investing right. Purchasing tax liens and foreclosing on them gives you the ability to purchase properties at a fraction of their cost. Then you can turn around and either rent them out (and make some steady passive income) or sell them at market value for a tidy profit.

If you allow your home to be foreclosed or if you sign a Deed-in-Lieu of Foreclosure. Home owners will take a hit of about 250 points on their FICO score. This means if a their FICO score before foreclosure was 680, it could dip as low as 430. A home owner who wants to buy another home after foreclosure will end up waiting about 24 months before a lender will offer any kind of interest rate that makes sense. During that time you must have a near perfect credit.

The affect of a short sale on a home owner's credit report is much less damaging. The negative on credit may show up as a pre-foreclosure in redemption status, which will result in a loss of around 80 points from the FICO score. It can also simply show up as the loan was paid off and not affect your score at all. This means a short sale with a previous FICO of 680 could possibly see it fall to around 600 or it could remain the same.

There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure. I would advise looking into this first.

If you allow your home to be foreclosed or if you sign a Deed-in-Lieu of Foreclosure. Home owners will take a hit of about 250 points on their FICO score. This means if a their FICO score before foreclosure was 680, it could dip as low as 430. A home owner who wants to buy another home after foreclosure will end up waiting about 24 months before a lender will offer any kind of interest rate that makes sense. During that time you must have a near perfect credit.

The affect of a short sale on a home owner's credit report is much less damaging. The negative on credit may show up as a pre-foreclosure in redemption status, which will result in a loss of around 80 points from the FICO score. It can also simply show up as the loan was paid off and not affect your score at all. This means a short sale with a previous FICO of 680 could possibly see it fall to around 600 or it could remain the same.

There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure. I would advise looking into this first.

Immediately contact your credit provider, apologize for the situation and ask what you can do about it. There will be a solution, and they would much rather you work with them to find this solution rather than bury your head in the sand and hope the debt will go away. It won't. With luck you'll find a way of explaining how you've let the matter reach the summons stage.

When you file for Chapter 13 bankruptcy, your home is generally protected from foreclosure, as the bankruptcy process allows you to create a repayment plan to catch up on any missed mortgage payments over three to five years. You can keep your home as long as you adhere to the repayment plan and continue making your regular mortgage payments. However, if you fail to comply with the plan or miss payments, you risk losing your home. It's essential to consult with a bankruptcy attorney to understand your specific situation and options.