Homebuyer Tax Credit Might Not Be Enough for Chicago Homeowners to Stop Foreclosure
At first glance, it looks like a good deal: Buy a new house and Uncle Sam gives you $6,500 back. But there's a pretty big catch, according to Atlanta bankruptcy attorneys.
When the federal government agreed to extend a tax credit originally intended for new homebuyers to existing homebuyers, they hoped it would encourage folks to upgrade to bigger houses - and that, in turn, would stimulate the real estate market.
Yet the market has stayed flat. Why? Because although we'd all love to have bigger, better houses, most of us are struggling to hold on to the ones we already have. Forget a new house - what we need is Chapter 13 bankruptcy.
Many homeowners are unemployed. Many of us are underwater, meaning we owe more on our homes today than what we paid for them. And nearly all of us have credit card debt - not to mention other debts. All of those things make it hard to pay the mortgage. And when you start slipping on the mortgage, it's only a matter of time before you get that dreaded piece of paper in the mail - the foreclosure notice.
Handing out a tax credit for a new house isn't a way to stop foreclosure. Filing for Chapter 13 bankruptcy, on the other hand, is. From the minute you file for Chapter 13, a legal action called the automatic stay stops foreclosure. After that, you'll be able to work out an affordable way to lower debts that are getting in the way of your mortgage payment.
Every smart shopper knows that you shouldn't have to spend money to save money - that just doesn't add up. What does add up? Paying down debt so you can free up more for the mortgage and other necessities each month. Bankruptcy can help you do it. Find out if Chapter 13 is right for you when you try a free personal debt analysis with a DebtStoppers bankruptcy attorney in Atlanta.