DebtStoppers USA Bankruptcy Blog

Federal and state governments have struck a historic $26 billion dollar settlement with banks accused of wrongfully handling foreclosures.

Of the total, $146 million is earmarked for Tennessee, according to the Memphis Business Journal.

The five big banks involved in the deal were part of a nationwide investigation of improper foreclosure practices in which mortgage servicers used robo-signed documents and other potentially incorrect information to unfairly throw people out of their homes.

By hashing out the agreement, lenders were able to avoid criminal prosecution.

Money resulting from the settlement is intended to help prevent more foreclosure problems, ease the current mortgage mess, and assist some of those who lost their houses.

Unfortunately, Tennessee bankruptcy lawyers say it may not do much good for those who need it most.

Most of the money is being distributed to help state and local government agencies better enforce fair lending practices. If successful, this is good news for those buying a house in the future - but it doesn't do much for people who have already been thrown under the bus by lenders.

It's estimated that about 750,000 borrowers who can demonstrate they lost a home to improper foreclosure between January 2008 and 2011 could qualify for receiving a check for up to $2,000.

However, in order to qualify, your mortgage must have been serviced by one of the five participating banks - Bank of America, Ally/GMAC, Wells Fargo, Citi, or JPMorgan Chase.

The settlement can't be used for loans serviced by Fannie Mae and Freddie Mac, which together make up about half of mortgage debt in the United States.

For most borrowers, the settlement is too little, too late. But that doesn't mean borrowers are out of options.

Whether you're in danger of missing your first mortgage payment or the bank has already started the foreclosure process, filing for bankruptcy in Tennessee can protect your home.

For those who have already lost a house, bankruptcy may be the best way to eliminate credit card debt, get back on your feet, and - once you've successfully met the requirements of bankruptcy - improve your chances of qualifying for future loans.

With Chapter 13 bankruptcy, homeowners are able to make affordable payments over a period of 3-5 years. With the burden of unsecured debt gone, meeting obligations such as the mortgage payment may become more manageable.

Continue reading "Tennessee Bankruptcy Can Assist Mortgage Holders Not Helped By Bank Settlement" »

New changes to the government's Home Affordable Refinance Program could help more than 6 million homeowners in danger of losing their houses to foreclosure, according to CBS Atlanta. But is it enough?

HARP was introduced in 2009 to help troubled homeowners refinance mortgages, despite having little to no equity in their homes.

But though the program was well-meaning, it hasn't had much effect so far because lenders have their own sets of qualification guidelines. For underwater homeowners in Illinois, filing for bankruptcy in Atlanta has continued to offer the best solution.

However, recent updates to the program could change that.

Mortgage servicers are currently enacting HARP changes announced last fall, including the elimination of a limit on just how underwater a borrower can be to qualify. Previously, balances could not exceed 125 percent of a home's current value.

In addition to doing away with the limit, Uncle Sam is putting a lid on upfront fees known as loan level pricing adjustments. Until now, lenders have been slapping low-equity borrowers with fees as high as 2 percent of their loan's balance. A new limit keeps those fees to 0.75 percent or less.

Real estate data estimates that 6.7 million homeowners could now be eligible to use the program. However, it's unclear how many will actually be helped.

HARP is voluntary for lenders, so if your bank doesn't participate, you can't take part. Atlanta bankruptcy lawyers have also seen qualifying homeowners apply, only to be turned down at a lender's convenience.

To date, just 1 million borrowers have found mortgage relief under the program.

Unlike a refinance, qualifying for Chapter 13 bankruptcy does not depend on home equity. Furthermore, Atlanta bankruptcy has the ability to help borrowers who have fallen behind on payments (homeowners must be current on payments in order to qualify for HARP).

Atlanta bankruptcy offers another advantage - the ability to relieve unsecured debts.

Many homeowners run into trouble because credit card debt interferes with other bills, like the mortgage. Filing for bankruptcy in Atlanta can help.

Continue reading "Atlanta Bankruptcy Still a Solution for Homeowners Not Helped by HARP Changes" »

Credit card issuers are increasingly trying to lure customers back with rewards cards, reports The Chicago Tribune.

But while the cards may come with perks, they don't come with the greatest interest rates. And as our Chicago bankruptcy lawyers point out, that can lead to trouble for Illinois consumers.

Credit card companies mailed out 37 percent more offers last year than in 2010. Most of those solicitations were sent to people with the highest credit ratings.

The Tribune article looks at the best rewards cards for Illinois students, who are typically excluded from offers because of either their lack of credit history or large amount of debt.

But maybe it's a good thing that it's more difficult for young people to qualify for a good rewards card.

While the cards may seem like a boon for customers, they're really just a marketing tactic for banks, who are looking for new ways to sign up cardholders after several years of tightening credit.

Most rewards cards offer 1 percent back on purchases, while the very best cards offer 5 percent back for specific categories like gas and groceries.

For consumers who pay their balance off in full each month, it's a nice little discount - assuming you're buying things you would have purchased anyway.

But in the real world, many people don't pay their balances in full.

For young people struggling with student loans and low-paying jobs, it can be especially tempting to carry a balance. All it takes is one late payment and rewards can easily be whittled away by fees, leaving a high interest rate and no benefits.

Chicago consumers are better off finding the card with the lowest rate, not the best rewards - no matter how appealing those rewards may seem. And if spending is out of line with income, consumers are always better off using cash and paying down existing credit card debt. Chicago bankruptcy can help.

The longer young borrowers wait to deal with their credit card spending, the harder it will be to climb out from under the pile of debt. Filing for bankruptcy in Chicago is a guaranteed way to legally relieve unsecured debt, paving the way for a brighter financial future.

Continue reading "New Rewards Cards Tempt Consumers into More Credit Card Debt in Chicago" »

Lenders are beginning to market personal loans as a way for cash-strapped Atlanta consumers to consolidate debt, according to The Wall Street Journal.

While small loans all but died off during the recession, banks now see them as a way to make up for a reduction in home equity loans and other types of lending.

As a result, major lenders are ramping up their marketing efforts. Banks mailed 425 million personal loan offers to customers in 2011 - that's up from 290 million in 2010.

A personal loan can be used to finance a home remodel, pay for a wedding, or pay off debt over a fixed period of time. While personal loans don't come cheap - they're usually more expensive than secured loans like mortgages or car loans - they're almost always more affordable than credit cards.

A typical five-year personal loan for a borrower with good credit may have an interest rate between 8.5 percent and 14.5 percent, while a typical credit card could have a rate of 20 percent.

Some banks are offering even better deals. For instance, American Eagle Federal Credit Union will lower the interest rate on personal loans to 6.25 percent if consumers agree to have payments automatically deducted.

But Atlanta bankruptcy lawyers say there may be a catch.

Personal loans work best for borrowers with a small amount of existing debt. However, the loans can actually aggravate financial troubles for those attempting to consolidate large credit card debts.

Consumers who have routinely used credit cards to stay afloat during tough times may be tempted to pile on new charges after consolidating debt with a loan, further complicating an already complex situation.

Falling salaries and rising costs have led many Americans to rely on credit cards almost as supplemental income sources. Unless spending habits are changed, consumers are likely to continue using credit after taking out a personal loan.

The problem with consolidating debt when you are still using existing lines of credit is that debt is only spread around, not eliminated. Filing for bankruptcy in Atlanta can provide a better solution.

Bankruptcy was developed specifically to assist consumers in getting rid of debt. Depending on the type of Atlanta bankruptcy you file for, you will either be provided with an affordable payment plan or the ability to discharge debts in entirety.

Continue reading "Lenders Market Personal Loans for Debt Consolidation, But Atlanta Bankruptcy May Be More Realistic" »

More Tennessee residents are taking out personal loans to pay down debt - but while some borrowers are finding relief, others end up exacerbating their debt problem.

After falling out of favor during the recession, personal loans are once again being handed out by lenders for everything from kitchen remodels to debt consolidation, reports The Wall Street Journal.

With tighter lending standards and low real estate prices ruling out the possibility of a home equity loan for many homeowners, lenders see personal loans as a way to grow their business. Banks mailed out 424.8 million offers for personal loans in 2011, compared to just 290.5 million in 2010.

Personal loans don't come cheap, but they can be more affordable than credit cards. A typical interest rate for a borrower with good credit is between 9 and 15 percent for a five-year personal loan, whereas interest rates on credit cards are often more than 20 percent.

Some banks are sweetening the deal further by issuing "debt consolidation specials" with rates as low as 6.5 percent if customers agree to allow their payments to be directly deducted from their accounts.

For consumers committed to paying off debt, a personal loan may provide a solution. But Tennessee bankruptcy lawyers have also seen debt consolidation loans make a bad situation worse.

Many Americans have relied on credit cards to make ends meet during the recession. When our paychecks didn't cover car repairs, doctor's bills, or phone bills, we paid for them with plastic.

Unfortunately, leaning on the crutch of credit can be a hard habit to break. This is where Tennessee bankruptcy comes in handy.

People who take out debt consolidation loans or transfer credit card debt to a card with a lower rate often continue racking up debt. As debt continues to grow, the lower interest rate offers little relief.

Sadly, many people with personal loans find themselves burdened with new credit card debt on top of loan payments.

Consolidating debt is just another term for moving debt around. If debt is running your life, rearranging it isn't enough - you need to eliminate debt. Filing for bankruptcy in Tennessee provides the power to do just that.

Continue reading "Debt Consolidation Loans Make a Comeback, but Tennessee Bankruptcy May Offer Smarter Solution" »

Personal loans all but disappeared during the recession, but it looks like they're making a comeback.

The Wall Street Journal reports that lenders like Wells Fargo and Discover Financial Services are signing Chicago consumers up for personal unsecured loans to cover expenses like home repair projects, weddings, and paying down debt.

Bank customers received 425 million mail offers for personal loans in 2011 - that's up from just 290 million sent in 2010. Banks know that with falling housing prices and tighter credit, fewer consumers will seek - or qualify for - home equity loans. But they can make money off consumers with smaller loans.

With income stagnant and costs rising, many consumers have been relying on credit cards to make large purchases - or even to pay basic bills - in recent years.

For some, personal loans offer a way to pay down credit card debt and regain control over finances. For others, Chicago bankruptcy may be a more realistic solution.

On one hand, personal loans tend to come with lower interest rates than credit cards. While many credit cards charge upwards of 25 percent, most borrowers will pay 9 to 15 percent on a personal loan.

That difference in interest could make the loan worth it - if consumers stop putting charges on their credit cards.

Unfortunately, Chicago bankruptcy lawyers have seen many people continue to add to credit after securing a loan that is supposed to pay down debt. For folks used to relying on credit as a supplemental income source, it can be difficult to suddenly stop spending beyond their means.

As a result, many borrowers end up with yet another monthly payment on top of a burden of debt.

Every financial situation - just like every consumer - is different. If consolidating debt allows you to pay your balance off faster and more easily than making credit card payments, it's something to consider. But for most consumers, debt problems run deeper than the credit card balance itself.

Consolidating debt just shifts it around. Filing for bankruptcy has the ability to attack the core of your debt troubles by eliminating unsecured debts.

Continue reading "Banks Pushing Debt Consolidation, But Chicago Bankruptcy May Be Better Solution" »

A list of the top causes of debt confirms that financial troubles can often be attributed to factors we can't control, such as income loss and medical expenses.

However, as our Atlanta bankruptcy attorneys often point out, we can control the way we deal with these situations.

According to an article by Bankrate.com, the top causes of debt are money management issues, changes in income level, and unexpected costs like divorce or hospital bills.

Money Management

Sometimes debt accumulates as a result of our own financial behaviors. This is often the easiest type of debt to fix (though, when it comes to debt, "easy" is a relative term).

If you're spending without a budget or plan, you're missing out on the opportunity to spot patterns that may be causing your expenses to be out of line with income.

While organizing your finances can't make up the gap when you're spending more than you earn, it can offer the insight you need to make changes that can improve your situation.

For instance, if you expect to spend more in December due to holiday gifts, you'll know to save up in November and January. If you're trying to cut back on costs, you may be able to pick out unnecessary expenses that can be eliminated.

And if you discover that no amount of tweaking is going to keep debt from continuing to grow, getting organized may help you realize it's time to seek help.

Income Level

With rising costs and falling wages, many Americans are just barely able to make ends meet. When a reduction in hours suddenly lowers income, many people have no choice but to turn to credit cards to pay the bills.

But instead of reducing costs in line with a new income level, many of us continue spending as usual with the assumption that the income change will be temporary. Of course, thanks to interest, making the same purchases with credit actually requires spending more money.

It's far better to have a reserve of cash built up just for these types of emergency situations. Unfortunately, most Americans don't have enough savings to carry us through a few weeks of unemployment - let alone a few months.

If lost income has led to unmanageable credit card debt, Atlanta bankruptcy can offer relief. While some forms of bankruptcy require payment plans, Chapter 7 bankruptcy makes it possible for those with little to no income to have unsecured debts discharged. Because the last thing you want to worry about when you're trying to feed your family is a mountain of credit card debt.

Unexpected Costs

It may be smart to plan for a layoff in today's economy, but how do you plan for a divorce, lawsuit, or hospital stay?

Nobody likes to think these things may happen, but the sad truth is that they do. And because they blindside us, they can cause the most difficult-to-manage debt. To make matters worse, many hospitals and law firms are accepting credit cards, making it all too easy for consumers to be instantly stuck with thousands of dollars of unaffordable debt.

Ignoring the problem by making minimum payments won't make it go away. As debt grows, it can cut into your ability to pay other bills, damage your credit, and limit your opportunities.

Bankruptcy was created exactly for this situation. Filing for bankruptcy in Atlanta can help consumers recover from surprise expenses and find a fresh financial start. A professional Atlanta bankruptcy attorney can determine whether bankruptcy offers a solution for your debt situation.

Continue reading "Credit Card Debt in Atlanta Often Has the Same Root Causes" »

It's hard to fix a problem when you haven't identified what's causing it in the first place. Debt is no exception.

A recent article on Bankrate.com lists the top causes of consumer debt. The good news is that some of the culprits - such as financial illiteracy and poor money management - can be remedied easily enough with education.

But as Chicago bankruptcy lawyers know, many people fall into debt because of circumstances mostly out of our control. These common causes include reduced income, unemployment, medical expenses, and divorce.

Depending on the root cause of debt, there may be different options for finding relief.

Income Causes

Thanks to a stumbling economy, a growing number of Chicago residents have been coping with a reduced or nonexistent paycheck for months.

One of the biggest problems with underemployment is that, initially, many of us look at the issue as temporary. Rather than get our spending in line with our newly lowered income, we may continue spending as usual with the help of credit cards. As our balance mounts with the accumulation of interest, we end up not only with a pay reduction - but with the burden of a pile of debt.

When income is finally increased - whether it's by working more hours or finding a new position - paying down debt requires sticking to a tighter budget than before.

Filing for bankruptcy may be a viable solution for those short on cash. Unlike Chapter 13, Chapter 7 bankruptcy doesn't require a payment plan. In fact, many Chicago bankruptcy attorney clients have seen their unsecured debts discharged entirely.

Unforeseen Costs

Nobody plans to become ill or go through a divorce - but these trials are an unfortunate part of life. They also happen to be expensive, financially and emotionally.

Legal and medical bills add up fast. Making the situation worse, most of us already have credit card debt, and perhaps a mortgage, to contend with. Increasingly, hospitals and doctors are taking credit card payments, leaving many people with balances that are instantly tens of thousands of dollars higher.

While there's no preventing unforeseen costs, becoming educated about your health insurance policy - and making adjustments to coverage gaps and other details if necessary - may help.

Legal and medical fees can leave debtors feeling helpless, and seeking assistance from financial advisors or debt consolidation companies can just make the problem worse.

Bankruptcy was created specifically to help people resolve overwhelming bills. With the legal protection offered by a Chicago bankruptcy filing, many people have been able to get back on their feet and in control of their bank account.

Denial

While denial isn't technically a cause of debt, it's what allows so many people to stay imprisoned by it.

For some of us, denial means waiting on a financial windfall, like a job bonus or inheritance, that never comes through. For others, it means avoiding the little number on our credit card bill that tells us just how much we owe - and how many months it will take to pay off our balance.

Examining finances for the causes of debt breaks the cycle of denial so that consumers can identify a solution. A Chicago bankruptcy professional can help determine whether a bankruptcy filing is the right solution for you.

Continue reading "Top Causes of Consumer Debt in Chicago" »

With debt, as with so many other struggles, the first step to finding a solution is identifying what is causing the problem.

Tennessee bankruptcy attorneys often observe that - despite the different homes, jobs, and lives of the millions of Americans currently balancing large debt burdens - the root reasons for debt come down to just a handful of scenarios.

Bankrate.com recently highlighted the top causes of debt - some within our control, some not.

Money Management

Often debt accumulates as a result of consumer behaviors.

It should come as no surprise that many of us grow up with some degree of financial illiteracy. Schools today don't teach money management. Most of us were raised watching our parents pull out a credit card to make purchases. By the time we're in college, creditors are lining up to give us our first taste of plastic. The result is a lost generation of wayward spenders.

It all comes down to simple math: spend more than you earn, and you end up with debt.

Perhaps you spend more than usual during your holiday shopping spree but fail to save more than usual the next month. Maybe you don't have a budget, so you end up spending more some months than others, without ever recognizing the pattern. Maybe you don't have a savings plan, and surprise expenses force you to reach for the credit card.

Whatever the reason, debt ends up filling in the gap.

Organizing your financial information and creating a monthly spending plan is the best way to get expenses in line with earnings. It may not help you cover the bills, but at least you'll know where you stand.

Limited Income

More than ever, people are accumulating debt because of reduced pay or unemployment. When hours are cut or a job is eliminated, consumers feel they have no choice but to turn to credit to make ends meet.

The problem is that many workers who have recently become underemployed don't reduce spending because they view their situation as temporary. When a few weeks with a smaller paycheck turns into a few months, credit card debt snowballs. Throw payday loans with ultra-high interest rates into the mix, and you can really end up in a pickle.

Having an emergency savings to fall back on can prevent a short income loss from becoming a long-term burden. Unfortunately, few Americans have enough savings to make it longer than a month without pay.

When income is limited and debt is high, Tennessee bankruptcy can help people keep their heads above water. Unlike Chapter 13 - which requires a payment plan - Chapter 7 bankruptcy can eliminate debt for people with little income. Tennessee bankruptcy lawyers have seen many clients have their unsecured debt wiped out entirely.

Unexpected Expenses

Even a steady job can't protect us from surprise expenses. The reality is that people get divorced, sued, and sick or injured every day. The resulting legal and medical bills can easily total tens of thousands of dollars and bury consumers under a burden of debt for years.

But while it may not be feasible to prevent these expenses, we can control how we deal with them.

If possible, negotiating an affordable payment plan is a better solution than putting it all on a credit card. However, if a payment plan isn't an option, you need a plan for paying down that credit card balance. Making minimum payments and ignoring the bulk of debt is only going to make the problem worse.

Bankruptcy was developed specifically for helping consumers pay down unsecured debt caused by credit cards, medical bills, and legal fees. Filing for bankruptcy in Tennessee has the ability to eliminate debt at any point - but the sooner you file, the sooner you can lower bills and start keeping your hard-earned dollars for yourself.

Continue reading "Common Causes of Credit Card Debt in Tennessee" »

Atlanta home prices have fallen to the lowest level in 13 years thanks to a rush of recent foreclosures and short sales, according to the Atlanta Journal-Constitution.

The latest housing market data from Standard & Poor's Case-Shiller Home Price Indices shows that metro Atlanta real estate prices fell for the fourth month in a row this past November, dropping 2.5 percent from the previous month.

As of December 2011, the average sales price of a metro Atlanta house was around $178,000, a 12 percent decline from a year earlier.

While 19 of 20 major cities covered by the indices saw declines, Atlanta had the second-worst index among the group. Only Detroit fared worse.

Real estate experts say the region's high rate of foreclosure is to blame.

Last year, more than 60 percent of home sales in Atlanta involved foreclosed properties. And the problem is expected to get worse before it gets better.

With unemployment still high, wages low, and costs on the rise, many consumers who were previously able to squeak by paycheck-to-paycheck are finally finding themselves unable to juggle the mortgage payments with other bills.

Meanwhile, many banks that had halted their foreclosure processes last year in response to criticism about fraudulent practices such as robo-signing and document fabrication are beginning to handle foreclosure cases once again.

As Atlanta bankruptcy lawyers have reported, an increasing number of homeowners are turning to Chapter 13 bankruptcy to stop foreclosure and stay in their homes.

Also known as the "wage earners bankruptcy," Chapter 13 allows consumers to pay off unsecured debts like credit card balances over a period of 3 to 5 years. During this time, important assets such as homes and vehicles are protected from repossession. If payments are made on time, debt remaining after the payment period is up can be discharged for good.

Chapter 7, the most popular form of bankruptcy, doesn't require a payment period but may require some assets to be liquidated in order to cover debt. However, many people who qualify for Chapter 7 bankruptcy income requirements are able to eliminate debt without giving up their valuables.

On the other end of the spectrum, rock-bottom prices and a limited number of homes for sale make today an ideal buyer's market. If overwhelming debt and mediocre credit is preventing you from owning your own home, bankruptcy may offer yet another solution.

By helping consumers rid themselves of growing debt burdens, bankruptcy can help increase income and allow potential borrowers to start rebuilding credit so it's possible for them to qualify for loans with reasonable interest rates.

Continue reading "With Area Home Prices at New Lows, Atlanta Bankruptcy May Help Potential Homebuyers" »

After a few years of cutting costs and trimming budgets, it appears that Tennessee consumers are once again slipping back into debt.

The average Tennessee resident now owes $24,043 in credit cards, personal loans, and auto loans - a $500 increase over last year, according to credit reporting agency Experian. Residents in Middle Tennessee areas including Nashville have a slightly higher average debt load of $24,152.

Higher levels of debt can mean one of two things: Either consumers are feeling more confident in their ability to spend, or they're falling back into the bad habit of spending more than they're earning.

Some financial experts fear it's the latter.

Those who have struggled to stay afloat since the recession arrived may finally be falling behind. With costs rising and wages falling, people who were formerly living paycheck-to-paycheck are falling back on credit cards.

According to The Tennessean, U.S. wages rose just 0.9 percent in 2011, while inflation increased by 3.2 percent. Savings dropped from 5.3 percent in 2010 to 4.4 percent in 2011.

But despite the recent return to debt, the average Tennessee consumer still managed to reduce personal debt by $2,000 between 2007 and 2010. That's compared to just an $800 reduction by consumers nationwide.

A portion of the debt decrease may be due to bankruptcy filings. Tennessee had the country's third-highest personal bankruptcy rate last year, according to the article.

Unlike credit counseling and debt consolidation, bankruptcy is the only debt-fighting tool legally created with the consumer in mind. Filing for bankruptcy in Tennessee has the power to substantially reduce or eliminate debt, stop wage garnishments, and halt harassment from debt collection companies.

Of course, some of the state's lowered debt levels can be attributed to consumers prioritizing their credit card payments over mortgage payments - a practice that can eventually result in foreclose.

Homeowners who qualify for Chapter 13 bankruptcy can kill two birds with one stone. Chapter 13 legally stops foreclosure while setting up a payment plan to help consumers lower debt. After the mandatory 3-5 years, any remaining debt is discharged free and clear.

The bad news is that the economy may continue to get worse before it gets better. The good news is that Tennessee bankruptcy can allow consumers to do something about it.

Continue reading "As More Consumers Slip Back Into Debt, Tennessee Bankruptcy Offers a Solution" »

There's a common myth that filing for bankruptcy prevents consumers from qualifying for loans and credit in future. In fact, bankruptcy may be more likely to help your chances than to hurt them.

Many Americans looking to take advantage of today's low mortgage rates are learning that, not only can they not qualify for their desired rate, but they can't qualify for a mortgage at all.

According to the Chicago Tribune, as many as 25 percent of loan applicants - many with good credit scores - are being turned down by lenders. Over the last few years, the average credit score has actually risen to 760 from 720. Consumers are being more careful, yet we're being offered fewer opportunities.

Experts say the reduction in borrowers could have a harmful snowball effect on the economy. As fewer people are able to buy homes, demand will decrease and home prices will continue dropping.

If you've been hesitant to consider bankruptcy because you think it could limit your opportunities, consider this your wakeup call. Opportunities are already limited; bankruptcy can help.

Chicago bankruptcy lawyers have seen many clients wait to seek help until their credit card balance is sky-high and their credit score has hit rock bottom. But the farther you allow yourself to fall, the steeper the climb back up.

For many people with unmanageable mortgage payments, credit card bills, or medical debt, bankruptcy can be a way to stop the financial bleeding before it gets worse - so you can be in a better position to grasp economic opportunities when they do inevitably arise.

Contrary to popular belief, it is possible to qualify for loans and credit cards after a Chicago bankruptcy filing - sometimes in just a few months. Yes, a bankruptcy filing will be noted on your credit report for several years after filing. However, so will everything else that you accomplish during that time.

If Chicago bankruptcy is what it takes to eliminate debt and get back on track, the rewards of filing probably outweigh the risks.

For consumers who already have a mortgage but are struggling to make payments or qualify for a refinance, Chapter 13 bankruptcy can provide the legal power to stop foreclosure and regain financial control.

The lending market looks like it may get worse before it gets better, according to the Chicago Tribune article. New regulations intended to minimize the kind of risky lending that led to the mortgage crisis could require buyers to cough up down payments of at least 20 percent, essentially pricing all but the wealthy out of the housing market.

Continue reading "Chicago Bankruptcy May Help Potential Borrowers Unable to Qualify for Loans" »

A marriage-wrecking infidelity doesn't always involve another person. For many couples, it involves a credit card.

More than half of people who share finances with a partner admit to lying about a purchase, according to a survey by the National Endowment for Financial Education. And 31 percent surveyed cop to being downright deceptive about money.

Debt has a habit of spiraling out of control when untended. Living with too much debt is difficult enough when you're the only one affected - but when you share financial responsibilities with someone else, things really get complicated.

For many Georgia couples, filing for a bankruptcy in Atlanta is the best way to eliminate debt - and save their marriage.

Many times, Atlanta bankruptcy lawyers have watched marriages fall apart because one spouse or partner was keeping financial secrets for years.

The longer one person hides a purchase or debt, the more likely it is that the problem will become unmanageable. Often times, the spouse hiding financial troubles feels anxious, helpless, and depressed. And of course, when the cat is let out of the bag, the partner kept in the dark is likely to feel resentful and angry.

When people have different money priorities, it can be difficult to repair a relationship damaged by financial infidelity. But if you have the same money goals, it's possible to work together to overcome debt and get back on track. Bankruptcy can help.

This Valentine's Day, perhaps it's time to have a heart-to-heart with your husband/wife or boyfriend/girlfriend about the state of your finances. It might not sound romantic, but it may be the best thing you can do for your relationship.

Couples who work together are more likely to succeed financially - even if it takes hard work to get there. After all, two heads are better than one.

Even better, consider seeking advice from a financial expert such as an Atlanta bankruptcy attorney. Many couples are able to eliminate most or all of their unsecured debts with a Chapter 7 or Chapter 13 bankruptcy.

Meanwhile, here are some relationship tips from CNN Money.

Discuss Money Before Marriage

Once you're married, what's yours becomes ours. It's important that couples are honest with each other about their financial situations and priorities. A problem like student loans or credit card debt doesn't have to be a deal breaker - and it can be overcome if you work together. But if you're hoping to save up for a house while your significant other is a chronic over-spender with no plans to change, you may never be on the same page financially.

Know the Warning Signs of Debt Denial

People hiding their financial behaviors often exhibit red flags. For instance, they may hide credit card bills so that you can't see the balance. You may find shopping bags with recent purchases stashed in the closet. You might see more bills arriving more frequently. And often times, you'll notice that your partner becomes irritated when you bring up finances. All of these signs indicate it's time to talk about money. No matter how large the debt troubles, bankruptcy may provide a solution.

Go Over Your Finances Together

One of the best ways to prevent debt from spiraling out of control is to manage your money together. Sure, it's fine if one spouse handles the bill paying, but you should both have an idea of how much money is being spent and saved. Make a point to go over your bills, bank account, and credit report periodically so you're both on the same page. You can access one free annual credit report from each of the three credit bureaus from AnnualCreditReport.com.

Continue reading "Credit Card Debt Takes a Toll on Marriage for Many Atlanta Couples" »

Think the top cause of divorces and breakups is infidelity? Think again.
It turns out that financial unfaithfulness is one of the leading reasons for relationship problems.

Yet more than 80 percent of married people copped to hiding financial information from a spouse - be it a credit card balance, a purchase, or a separate bank account, according to a survey by CESI Debt Solutions. In a poll by the National Endowment for Financial Education, 16 percent of those who lied about finances said their money problems resulted in divorce.

Perhaps the best Valentine's Day gift for your significant other is not spending money on that box of chocolates.

Even better, perhaps you can take the time to sit down and talk about solutions to your debt - such as filing for bankruptcy in Tennessee. It's not the most romantic conversation, but it just might save your marriage.

While any amount of financial difficulty can put a strain on a relationship, it's hidden debt - for instance, when one spouse makes secret purchases or maintains a separate credit card - that takes the biggest toll.

Time and time again, Tennessee bankruptcy lawyers have seen couples become buried under a sea of debt because one partner kept secrets instead of seeking help.

As time goes on, the secret-keeping partner's financial troubles may snowball as they attempt to manage finances alone. Bearing the burden can leave them feeling overwhelmed, depressed, and lonely. Meanwhile, the spouse being lied to often knows something is up - and when the secret is out, they are likely to be resentful, angry, and suspicious of their partner's activities.

In worst case scenarios, people have opened credit card accounts in their spouse's name. However, just being married can make you liable for your partner's debt in most states, whether or not your name is affixed to their bills.

While there's no easy solution to existing debt, talking about the problem is the only way to make progress. Living in denial is no way to spend a marriage.

Even if one person handles the finances, both partners have the right to know how the couple's money is being spent and saved. Two heads are better than one, and handling a stressful financial situation together - as opposed to separately - can provide the combination of brainpower and moral support needed to get through a difficult time.

When lowering debt requires much more than simply rearranging a budget, Tennessee bankruptcy may be a solution.

In the meantime, here's some advice from CNN Money on preventing and dealing with problems money in a relationship.

Get Your Priorities Straight

Engaged? Make time to discuss your current financial situations and future financial goals as a couple before you walk down the aisle. Marriage complicates financial matters. While it's definitely possible to overcome debt together, most people never overcome financial incompatibility. This is the time to make sure you are on the same page about financial priorities, as your money moves as individuals will affect you both once you're legally married.

Look for Financial Red Flags

Debt has a tendency to keep growing. The sooner you both acknowledge a problem forming, the sooner you can figure out how to solve it. Have you noticed your partner relying on credit lately? Are new bills showing up, some for purchases you didn't know about? Are there shopping bags in the closet? Does your spouse get irritable when you ask questions about your finances? You may need to stage a financial intervention. While many people hide their financial problems because they're scared or ashamed, bankruptcy can often eliminate debts in the toughest of situations.

Hold Family Money Meetings

Prevention is the best medicine. If you make a point from the beginning of your marriage to go over your finances together once every month, quarter, or whatever timeline works for you, an incentive for honesty is created. It's fine if one partner handles financial tasks, but both should be aware of how the money is being spent. One way to start is by getting copies of your free annual credit report.

Continue reading "Hidden Credit Card Debt Strains Tennessee Marriages" »

Maybe the best gift you can get your significant other this Valentine's Day is to come clean about your credit card debt and make a commitment to solving the problem together, perhaps with help from Chicago bankruptcy.

Studies have pegged debt right up there with infidelity as one of the top causes of breakups and divorces in the US. But often it's not the debt itself that's the problem.

As many as 80 percent of spouses hide purchases, bank accounts, or credit cards, according to a survey by CESI Debt Solutions.

Chicago bankruptcy lawyers have spoken with many clients who spent years hiding credit card debt and other money woes from a spouse or partner, ultimately damaging the relationship and allowing their financial troubles to spiral out of control.

It's true that debt causes stress, and stress can take a toll on your relationship. But hiding debt causes something worse: communication breakdown.

Spouses who hide the severity of their debt frequently suffer from depression and other health issues due to the anxiety of bearing their burden alone. The spouse kept in the dark often becomes suspicious and untrusting, and - when the debt is exposed - feels angry, resentful, and betrayed.

In most states, both people in a marriage suffer a reduced credit score and are considered liable for debt, even if one partner is mainly responsible.

There's truth to the old saying that two heads are better than one. Not only can working together with your partner help you come up with a more rational solution for dealing with debt, but it can also keep you on the same page, reducing feelings of helplessness or resentment.

Of course, it's unrealistic to assume that simply talking about finances will make relationship stress disappear. But being open is a start.

Most financial advice for couples is limited to tips on saving money for a house or how to separate bank accounts. But what happens when just rearranging the budget isn't enough to pay the bills and pay down debt?

Often times, bankruptcy can provide the most realistic solution when debt has become unmanageable. With a Chapter 7 or Chapter 13 bankruptcy, most or all of a couple's unsecured credit card debt can be eliminated, saving years of accumulating interest - and a lot of stress.

In the meantime, here are a few tips from CNNMoney on how to maintain your relationship while battling debt.

Have the Money Talk Early On

Ideally, take some time before you get married to sit down and talk about where you stand financially and how you intend to handle finances together. A relationship can survive without perfect finances (for instance, you may decide to eliminate debt with a tighter budget or bankruptcy) but it can be very difficult if partners aren't financially compatible to begin with. It's a good idea to find out whether you share financial priorities before your finances become legally tied.

Look for Red Flags

Does your spouse only pay with a credit card? Have you noticed a lot of new bills sitting around the house - some for purchases you didn't know about? Or perhaps you haven't noticed any bills because your partner has been squirreling them away? When you attempt to talk to your significant other about money, do they seem resistant - or even angry? You may need to get to the root of a financial problem - and seek financial help together.

Go Over Your Finances As a Couple

Make a point to get periodic credit reports (you're legally allowed one free annual credit report from each credit bureau) and go over them together. It may not be realistic to share every nickel and dime you spend, but couples should at least have a basic understanding of how much is being spent and saved by each party.

Continue reading "Credit Card Debt Takes Toll on Relationships of Chicago Couples" »

In the popular game Monopoly, a bank error in your favor usually works to your advantage. In real life, that's unfortunately not the case.

In a disturbing trend, a growing number of homeowners are finding themselves in foreclosure after a bank mistakenly marked their mortgage as delinquent. As a result, borrowers who have never missed a payment - and, in some cases, have paid off their homes in full - are ending up with tarnished credit and in lengthy and expensive court battles to save their homes.

Much of the problem stems from improper recordkeeping during the real estate boom times of the early-to-mid-2000s, when Wall Street pushed lenders to process mortgages quickly and sloppily so they could be broken up and sold to investors all over the globe.

Crucial legal procedures were often overlooked. Later, these same companies began forging documents and faking titles so they could foreclose on properties despite a lack of proper mortgage documentation.

Tennessee bankruptcy lawyers are aware of several cases in which a homeowner applied for a loan modification, only to be turned down because the bank couldn't locate who held the actual mortgage note.

Without clean records of home loans, banks are making mistake after mistake. It's currently estimated that nearly 13 percent of homes in the United States are either in foreclosure or at least 30 days delinquent. Since there are no statistics on wrongful foreclosures, it's impossible to gauge how many of those homeowners may be falsely accused.

In a recent Reuters article, one family refinanced their home to take advantage of a lower rate, only to learn later that the bank had never closed out the original loan. Even though the homeowners had been making their payments on time, they ended up in foreclosure.

In another scenario, a bank's computer system mistakenly marked a Utah woman delinquent on a mortgage for a house she sold years earlier. By the time the woman's accountant got wind of the problem, it had already been reported to credit bureaus and damaged the woman's credit score.

The majority of foreclosures still occur because homeowners can't afford to make payments, whether it's due to an unexpected expense, a surprise job loss, or a mountain of credit card debt. But now it appears that even following the rules may not get you off the hook.

No matter how it happens, foreclosure has the ability to ruin your credit, prevent you from qualifying for affordable rates or new loans, and, of course, strip you of assets like your home. On top of your original missed payments, you may also owe fees and expenses from your delinquency.

In many cases, Tennessee bankruptcy may be a saving grace.

Filing for Chapter 13 bankruptcy can legally halt foreclosure while you get the kinks worked out. Meanwhile, a bankruptcy court can establish a repayment plan for unsecured debts like credit card bills, which can relieve some of the financial pressure for homeowners previously struggling to make loan payments.

Continue reading "Tennessee Bankruptcy May Relieve Rise in Foreclosures Caused by Bank Errors" »

It's bad enough that countless people are losing their homes because they can't pay the bills. But imagine the frustration of finding out you're losing a home you've paid off.

As banks rush to push through millions of foreclosures in 2012, errors are increasingly leading to foreclosures, lawsuits, and credit damage for consumers who are current on their loan payments.

With an estimated 12.5 percent of U.S. homes either in foreclosure or delinquent by at least a month, the problem is only expected to get worse.

Regardless of the reason for foreclosure, Chapter 13 bankruptcy may be the best way to legally stop the foreclosure process and allow homeowners to begin rebuilding their credit.

According to a recent Reuters story, a growing number of homeowners are reporting that they are being harassed by banks for mortgages that should have been recorded as paid in full.

In some cases, borrowers refinance a home loan but the original mortgage is never written off. In other cases, homeowners are sued for foreclosure on a house they sold years ago. And in some rare but worrisome cases, consumers are being pinned down for delinquencies when they never even had a mortgage to begin with.

It all comes down to the disorderly state of the lending industry.

During the peak of the housing boom in the mid-2000s, Wall Street encouraged mortgage servicers to quickly process loans so they could be sold around the world to thousands of investors. In the ensuing chaos, important legal procedures were brushed off.

Many times, Atlanta bankruptcy lawyers have seen homeowners have difficulty qualifying for a loan modification because the bank can't locate the owner of the original loan. Now homeowners are being held accountable for home loans that aren't even theirs. Because data has never been collected on wrongful foreclosures, there is no way to estimate the extent of the problem.

In one case, a Utah woman's accountant learned that the woman was being sued for foreclosure because a bank error had showed she was delinquent by a single dollar. As a result, her credit was ruined. In another instance, a Vietnam vet paid off his mortgage in full, only to have his bank continue sending notices in error.

It's an important reminder of how necessary it is to keep an eye on credit so that mistakes can be quickly corrected before they spiral out of control.

In the meantime, Atlanta bankruptcy is a helpful tool to have handy.

Errant fees and legal troubles can add up to cause serious financial hardship, whether deserved or not. And of course, many times foreclosure stems from a true inability to make payments, whether due to job loss, credit card debt, or medical bills.

Continue reading "Atlanta Bankruptcy May Help Consumers Plagued by Wave of Mortgage Errors" »

Homeowners shouldn't be surprised if they find a foreclosure notice in the mail after defaulting on their mortgage payments. But what if the bank began foreclosure proceedings for a loan you knew was already paid off?

More and more frequently, Chicago bankruptcy lawyers are seeing ghost mortgages coming back to haunt borrowers.

In a recent Reuters article, a Kansas couple refinanced their home to take advantage of lower rates. But while Wells Fargo said the original loan would be paid off in the refinance, it was never recorded in the paperwork.

As a result, the family was thrown into foreclosure - despite the fact that they had never made a late payment.

Experts attribute the problem to sloppy paperwork during the housing boom, when lenders attempted to sell as many loans as possible so they could resell to millions of investors. Now banks are using the same sloppy tactics to foreclose on as many homes as possible with reckless speed.

Some of the borrowers being pushed into foreclosure were never in default; others never even had a mortgage. Often times, a computerized banking error is the source of the mix-up.

It's a good reminder of why it's so important to keep tabs on the state of your credit. Banks report any late or missing payments - whether valid or not - to credit bureaus, who in turn record the discrepancies in your credit report. Having a credit score tarnished by a delinquent mortgage or a foreclosure you didn't know about can keep you from getting future loans or lower interest rates.

Of course, the majority of folks facing foreclosure are still those who have missed one or more payments, usually because of job loss or overwhelming credit card debt.

Regardless of how you've gotten into a mess with the bank, filing for bankruptcy in Chicago is often the best way out.

Chapter 13 bankruptcy has the power to stop foreclosure proceedings from the moment you file, so you can protect your house and stop the bleeding on your credit report.

Whether you're unfairly caught up in a foreclosure or are losing your house because you couldn't afford to make payments, the effects can ruin credit, put you at risk for costly lawsuits, and, of course, threaten to snatch the roof from over your head.

Bankruptcy can put a fast stop to foreclosure, so you can start rebuilding your finances, you credit, and your life.

Continue reading "Chicago Bankruptcy May Help Homeowners Haunted by Old Mortgages" »