The interest rate for new federally-subsidized Stafford loans, now 3.4%,  is set to double on July 1.  The Senate GOP blocked debate of the issue yesterday – indulging in yet more election-year politics while the financial well-being of low- to middle-income families hangs in the balance.  It is becoming increasingly clear that the government is not going to secure your prosperity  – you must.  You may be considering taking out student loans for yourself or your child, but can you afford it?  Are you taking into consideration your income and other debt obligations?  Many people in this situation are already unemployed or underemployed and struggling with overwhelming credit card debt or medical bills, or are “underwater” in their properties and needing relief from high mortgage payments.  If this sounds like you, call or email us today for a free consultation – we will discuss your goals and you will learn about all of your options, including but not limited to debt settlement and negotiation, mortgage modification and bankruptcy.   We look forward to helping you take charge of your prosperity.

People know how to make a good investment this time of year – it appears it is common to spend the hundreds one received as a tax refund to be discharged of thousands!  More than 200,000 money-strapped households will use their tax refunds this year to pay for bankruptcy filing and legal fees, says a new study by the National Bureau of Economic Research, USA Today reported today. This has been a consistent trend since the cost of bankruptcy soared after U.S. bankruptcy laws changed in 2005, and many more families have been forced to delay filing until they can afford to pay the fees, the NBER study says.  To read the full article, click here. And to schedule your free, no obligation consultation and find out how you can resolve your debt situation and start fresh, contact us today.

Have you heard of “strip off?” It is probably not what you think. It is legal-ese for the way in which filing a Chapter 13 bankruptcy petition can eliminate your second or third mortgage or HELOC.

Current market conditions have created an additional avenue of debt reduction in bankruptcy if you own a home and meet the following criteria: you have more than one mortgage on your property; you owe more on the mortgages than the property is worth (i.e., you are “underwater” or “upside-down” in your property), and; you have steady income to fund a small repayment plan and still keep the first mortgage current. If the property is worth less than the amount owed on the first mortgage, a second mortgage may be “stripped off” as unsecured and discharged through a Chapter 13 bankruptcy filing. An example: a property is worth $150K and it is encumbered by a first mortgage in the amount of $160K (not unheard of, considering what the market bore just a few years ago) as well as a home equity line of credit (HELOC) of $22K. If the property owner files a Chapter 13 petition, he or she will be able to strip off that home equity line of credit and get that $22K debt discharged as unsecured. Moreover, the property owner can cure any late or defaulted payments on their first mortgage through their Chapter 13 repayment plan, and save their home!

Interested in learning more? Contact us today for a free consultation.