Archive for January, 2016

A Fresh Start by Getting Rid of Judgment Liens

Bankruptcy gives you a fresh start by writing off debts, and more. It frees up your home by getting rid of judgment liens.     Writing off debts is good. But if a creditor got a judgment against you, and you own a home, most likely that debt has also turned into a judgment lien on the title of your home. You’re not going to get much of a fresh start on your home if it continues to be saddled by a judgment lien or two. Bankruptcy is relatively good at writing off (“discharging”) debts. But getting rid of liens can be…

Warning: Bankruptcy Scam Coming to Utah

Warning: Watch out for a bankruptcy scam coming to Utah — phone calls seemingly from your bankrutpcy attorney’s office with reliable sounding information, requesting fast money. Warning: You Wouldn’t Be Fooled by This If you get an email written in imperfect English from somebody saying she needs your help to move a huge amount of money out of her African country, and that you’ll get a healthy percentage of that amount if you just provide your bank account information, you probably know better than to respond to that email. Here’s a part of an email  which is an example of…

A Fresh Start by “Stripping” Your Second Mortgage

Stripping your second mortgage in Utah could give your home the very best fresh start by saving you a tremendous amount of money.   If You Can’t Afford the Monthly Payments on Your Home Last week we compared three ways to save a home in which you’re behind on your mortgage payments: mortgage modification, a forbearance agreement, and Chapter 13. Mortgage modification is the only one of these three which lowers the monthly payment on your first mortgage. A forbearance agreement just gives you a number of months to catch up on missed mortgage payments, during the same time that…

A Chapter 13 Fresh Start on Your Home

The very best fresh start for your Utah home can come from adjusting your mortgage and other home-related debts under Chapter 13.   Our last two blog posts have been about two options for when you need help making mortgage payments: a mortgage modification and a forbearance agreement. In a nutshell, a mortgage modification reduces the monthly mortgage payments through a permanent restructuring of one or more of the terms of the mortgage. A reduction in the principal amount of the mortgage debt is seldom included. So while modification can help in the short-term–if you’re fortunate enough to meet the…

A Forbearance Agreement Fresh Start for Your Home

Whether you’re about to fall behind on your Utah mortgage or have already done so, a forbearance agreement avoids foreclosure while you catch up.   Quick Definition A forbearance agreement gives you short-term relief to deal with a temporary period of financial hardship. Your mortgage lender agrees, either in advance or after the fact, to accept a period of reduced or suspended monthly payments in return for your agreement to return to full monthly payments and catch up on the missed payments within a certain length of time. The lender agrees to not foreclose—to “forbear” from foreclosing—as long as you make…

A Mortgage Modification Fresh Start for your Home

Mortgage modification may reduce your monthly payments on your Utah mortgage but not likely reduce your balance owed. So it costs less short-term, not long-term. Quick Definition A mortgage modification is a permanent restructuring of one or more of the terms of the mortgage intended to make it more affordable on a monthly basis. Compared to Forbearance Agreement A mortgage modification is intended to deal with the permanent unaffordability of the mortgage payment, while a forbearance agreement deals with a short-term unaffordability. With a forbearance agreement the monthly mortgage payments don’t change. The lender simply gives you a limited time…

Save Your Utah Home

If you want to save your Utah home and are behind on payments, do a mortgage modification, a forbearance agreement, or a Chapter 13 plan.   The Three Options Here’s a summary of 3 ways to get a fresh start on your mortgage — saving Utahns’ homes:
  • A mortgage modification is a permanent restructuring of one or more of the terms of the mortgage to make it more affordable. This usually involves a reduced interest rate, the conversion of a variable interest rate to a fixed one, an extended payback period (often to 40 years), or a deferral of paying part
Save you Vehicle through bankruptcy

Bankruptcy Vehicle Cramdown

A Bankruptcy Vehicle Cramdown can reduce your monthly vehicle payment and the total you pay on the loan through a Chapter 13.   With a Bankruptcy Vehicle Cramdown you could get a fresh start on your vehicle loan by:
  • Paying a smaller monthly payment immediately
  • Reducing the interest rate
  • Not needing to catch up on payments if you’re behind
  • Reducing the total amount you pay before the vehicle is yours free and clear
If you owe on your vehicle loan more than your vehicle is worth, and your loan is more than 910 days old (about 2 and a half years),…
Save you Vehicle through bankruptcy

Bankruptcy: Save Your Vehicle

You may be able to keep your vehicle for less money by “redeeming” it—paying its present fair market value instead of the full debt in a Utah Chapter 7 Bankruptcy. Before we begin discussing the options for saving your current car through bankruptcy, we want to advise you that your best course of action may be do get rid of your current car and discharge all the debt associated with it through your bankruptcy.  Use the money you will save by discharging your debts to buy a car you can afford with no payment.  Then start saving for a better…

Fix Your Vehicle Loan – Chapter 7

 A Fresh Start on Your Vehicle Loan through Chapter 7 “Reaffirmation”reaffirmation agreement makes you still liable on your vehicle loan so you can keep your car or truck after writing off your other debts.    The Problem Is it a struggle to make your car or truck payments? Have you been late on the payments and worried about your vehicle getting repossessed? Would it help your peace of mind if you could comfortably make these crucial payments? A Solution If you filed a Chapter 7 “straight bankruptcy” case, most or all of your other debts would likely be permanently written off…