Bankruptcy, Houses, and What is All This, Really?

July 6, 2010 - PRLog -- Our homes are very important to us, and owning one is a dream-come-true. It’s the place we call our own, a sanctuary, and the place where we raise our kids. However, if you do not make the right choices when financing or buy more house than you can afford, they can become your worst nightmare.

Paying for property taxes and insurance outside of a loan is fine as long as you have the money to pay taxes at the end of the year. If not, the property tax people can foreclose on your house or can force your mortgage company to pay them. Then the mortgage company will raise your payment in order to collect the money they paid plus collect money to pay them next year. If the taxes are around $4,000 dollars, your house payment could increase $750 dollars a month. Now that $800 hundred payment is $1500 to $1600. Can you still afford that? Depending on when you file a Chapter 13, the house payment will lower some but not a lot. Before the mortgage company pays the property taxes they can be put in Chapter 13 and paid over the next five years, but you need to be saving for the next year’s taxes.

A Bankruptcy is not something that can lower your house payment or let you have the house for free. But if you are behind it is something that will stop the foreclosure sale and enable you to put what you are behind on in the plan and keep paying your normal house plan.

When filing a bankruptcy case, you may find that you feel like you are signing your life away. There are plenty of documents to wade through and be signed or initialed, and you begin to think what all of this is for?

Responsible attorneys split the bankruptcy appointment into at least 3 processes. The first is the initial consultation where you have to opportunity to discuss your financial affairs with an individual that can provide you with options that can be available to you either in or out of bankruptcy.

The second appointment is generally the information appointment. You provide the mountain of bills to the attorney’s office to wade through in order to get an accurate listing of your creditors and debts. At the same time you provide your attorney with your property information and most importantly your income information.

The third and final appointment is the signing of documents. This appointment allows you to see everything you own and everyone you owe reduced to 50 pages of black and white print. Within this document there are many places to sign. Some people feel like they are purchasing a home and others like they are signing their life away.

The signing of bankruptcy documents is important for two main reasons; first, it allows you to review everything that you own and that you owe in order to evince any errors or omissions; and second, it affords the individual a greater opportunity to understand how the process works.

Filing a bankruptcy is a very complex case. However, if it is done correctly many people can make it through the process relatively pain free.

For more information visit http://www.bankrupcy-alternative.com/remove-bankruptcy-af...  or call us directly. Here is another bankruptcy article http://www.prlog.org/10779940-bakruptcy-exempt-property-a... for your reading enjoyment.

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