If you are considering bankruptcy because of the debt you owe on your house, you probably know something about filing for bankruptcy, but are still checking out the options that you have. Chapter 7 Bankruptcy, sometimes referred to as a â€straight bankruptcy,†is where your non-exempt property is sold and the cash proceeds are given to your creditors. This method of filing for bankruptcy has become more difficult recently, due to new legislation on the issue. Chapter 13 Bankruptcy allows you to reorganize your debts - consolidating your debts and paying them off, free of interest, over a time period of three to five years. This plan prevents creditors from collecting from you during the terms of the contract, as required by Federal Courts. However, you must have a consistent source of income for this type of bankruptcy to be approved, and you must continue to pay for your monthly living expenses as well as the debts you consolidate. Although both Chapter 7 and Chapter 13 bankruptcy can help you to get rid of some of your debts, filing for bankruptcy does cost money, and the legal battle can take time. A bankruptcy also stays on your credit report for ten years, marring your credit score, which can affect your ability to rent property or get a job, among other things. It also affects your short-term ability to get credit. In the past, bankruptcy was a popular way of dealing with mounting debts, such as too-high mortgage payments. Bankruptcy has become an increasingly difficult legal process to complete, it may not actually get you out of your mortgage agreement, and it is a major blemish on your credit history. The agents of 800 Debt Settle believe that you have other options, and that you should avoid foreclosure at all costs. If you have been making late payments on your loan, have a climbing adjustable interest rate, or have not paid interest and fees on your mortgage, one option that you should consider is a loan modification. One of our loan modification agents can help you negotiate your loan agreement with your mortgage company. The agents at 800 Debt Settle not only know the latest regulations regarding home loan modifications, but they are able to negotiate a more favorable contract with your lender than you would be able to do on your own. Some positive changes that can result from a loan modification include a lower interest rate on your mortgage, forgiveness of some of the amount you owe, stabilization of an adjustable rate mortgage, negotiation of lower monthly payments, and more. Not only can the above things result from enlisting the help of a home loan modification attorney, but you can also avoid the expense and time that a bankruptcy would entail. A loan modification will not adversely affect your credit report like a bankruptcy will, and you can stay in your house and retain the money that you’ve already paid towards your mortgage. An agent at the 800 Debt Settle can help you get these results more quickly than you could do on your own, and can save you the hassle of filing for bankruptcy. Contact us today for your free consultation. Visit us at 800debtsettle website
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