You know all those bad things you’ve always heard about bankruptcy? Most of it is NOT TRUE. Here are the Top 15 Myths your creditors want you to believe and the reason why every one of them is NOT TRUE. Myth 1: Everyone will know you have filed for bankruptcy. Unless you’re a prominent person…
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At a certain point, the burden of debt will lead almost anyone to their breaking point. Whether it comes as a result of job loss, medical bills, declining wages, rising costs or just human misfortune, the drafters of the Bankruptcy Code understood that there comes a point where enough is enough. If you live in…
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Chapter 13 bankruptcy is an interest-free repayment plan that allows you to combine your debts and repay all or part of them while protecting you from creditor harassment. It is an excellent alternative for debtors in Oregon and Washington whose financial problems cannot be helped by a Chapter 7. It often provides much greater protection…
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As anyone contemplating bankruptcy can tell you, it is nearly impossible to live a normal life today without credit. The bankruptcy laws were enacted largely to give Americans without credit a fresh start. These laws provide the debt stricken with an alternative to staggering year after year with an ever increasing debt burden and an…
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Home Equity Loans The major downside shared by all second mortgages, home improvement loans and home equity loans is that creditors require the borrowers to use their homes as collateral for the loan. Once a lender acquires a lien on the property, if the borrower can’t make the monthly payments, the lender can foreclose and…
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Credit-counseling agencies work with your creditors to lower the interest rate you pay on your unsecured debt. For their services, you pay the agency a monthly fee. While they may succeed in lowering your monthly payment, they do not lower the amount owed, nor do they stop the principal of your debt from increasing. Thus,…
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USING CREDIT WISELY AFTER BANKRUPTCY ‘‘Disguised’’ Reaffirmation Agreement Carefully read any credit card or other credit offer from a company that claims to represent a lender you listed in your bankruptcy or own a debt you discharged. This may be from a debt collection company that is trying to trick you into reaffirming a debt….
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In most Oregon and Washington bankruptcy cases, your home mortgage is not affected, and if you want to keep your home, you have to continue the payments. However, there is an important exception to this rule which applies in chapter 13 cases. If your home is worth less than what you owe on your mortgages,…
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Balance transfers are often advertised with an offer of dramatically reduced introductory rates for borrowers who are willing to transfer their balances onto a new credit card. Additional credit cards though are rarely the answer for managing debt. In fact, they usually exacerbate the problem. Many people keep their existing credit card accounts open, amassing…
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