What should you do if you’re underwater on your mortgage and you are considering a Chapter 7 or Chapter 13 bankruptcy? The term “underwater home” refers to houses that have lost so much market value that they are now worth less than the outstanding balance on the home mortgages. In many cases, a bankruptcy may be able to bring some relief to the owner of the underwater property so they can begin a financial fresh start.
- If a Chapter 7 debt discharge bankruptcy is being planned, the automatic stay will hold off any foreclosure until the Lender obtains Relief from the Automatic Stay or possibly until the discharge of the Chapter 7 case, typically 2-5 months. This could possibly buy the homeowner enough time to catch up with their payments and save the home from foreclosure.
- If the homeowner is significantly behind on the home mortgage, a Chapter 7 will buy the debtor a few months to find a new place to live. A Chapter 7 bankruptcy will also be of help if the debtor is burdened with significant amounts of credit card debt and other unsecured loans, and it erases the burden of continuing to owe money to the lenders after the home has been foreclosed.
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Verdict: The Platinum credit cards offered by MSUFCU have a few big advantages for cardholders. The credit limit is very generous and may be as high as $50,000 for those who qualify. There are also no hidden fees and a range of shopping and travel benefits. Still, these credit cards fall short with relatively high interest rates up to 17.9%. There is also a penalty APR that may be applied indefinitely and the rewards version of the card only earns 0.5% cash back on purchases, which is very easy to beat. Overall, this credit card is only recommended to members who do not carry a balance at all, always make on-time payments and don’t expect to earn rewards for purchases but simply want a free to carry card for large purchases.
Overview: Michigan State University Federal Credit Union (MSUFCU) offers two Platinum Visa cards to members. B
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Judgment debtor is a term of art referring a party against whom a creditor obtained a judgment. I frequently get questions about lawsuits and judgments. Common questions includes:
- What happens if I ignore a lawsuit?
- Can I file for bankruptcy before or after judgment?
- Can I discharge a debt even after judgment has been entered?
- If there is a judgment, can they take my house?
Here is my general short answer.
The longer you wait, the more difficult it will be to fix your problems and the fewer your options will be.
How does the creditor get a Judgment?
First, let’s start with a basic scenario.
You owe Discover $15,000. You fall behind and at some point, Discover (or a debt collector) brings a lawsuit against you. A lawsuit is initiated by filing a summons and complaint with the county court. Y
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One of the most important things that people have to do is to take care of their finances. They need to make sure that they have enough money for the regular services and products that they use on a daily basis and they also need the money for all sorts of other reasons such as maybe saving up for the children’s education or maybe for an unforeseen medical crisis. In any case it is incredibly important that people stay constantly aware of what is happening with their money. That is why the credit report and in particular the free credit report is such a valuable help to people.
The credit report is in essence a reflection of how a person handles their debt and acts really as an evaluation tool for the many financial institutions. There is then a need for people to make sure that the credit report will be an honest representation of themselves and the only way that people can do that is to see it for themselves. T
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In most bankruptcy cases, at the 341 hearing, the bankruptcy trustee will ask the debtor, “How did you get into this situation?” Our Boston bankruptcy clients are instructed to answer honestly, albeit briefly. The answers vary, of course. In Massachusetts bankruptcies, anecdotal evidence shows that there are not as many medical bankruptcies as reported nationally. However, in a fascinating academic study it was shown that there is a direct correlation between cancer and subsequent personal bankruptcy.
The study, presented by Dr. Scott David Ramsey, of the Fred Hutchinson Cancer Center, in Seattle, was conducted in Washington State. It linked the Western District of Washington bankruptcy court records with the National Cancer Institute’s SEER (Surveillance Epidemiology and End Results) for Washington State. The study was published by the Journal of Clinical Oncology and included examining 231,799 cancer cases.
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With every new year comes new goals and resolve. One of your new year’s goals must be to save money on your taxes. Here are some things you can do that can either cut your tax bill or help you save more money this year.
1. Set out your tax calendar for the year
The IRS has Publication 509 Tax Calendars that you can use (available at the IRS website www.irs.gov) to remind yourself of tax deadlines throughout the year. But the print version of the calendar is sold out and will not be reprinted for the rest of the year. However, you can also download a desktop version and integrate the calendar with other personal applications. The last thing you need is to be penalized for late payment because you missed an important tax deadline.
2. U
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