Bankruptcy Lawyer MA Matthew T. Desrochers » Bankruptcy MA

8 Tips on Avoiding Bankruptcy

admin — Fri, 05 Aug 2011 20:28:26 +0000

1. Pay off existing debt: If you cut out non-essentials such as cable, landline phone service and other subscriptions, you can free up some money. Another way is to sell assets such as furniture, electronics and other items on free websites such as Craigslist and eBay to earn some extra cash.

2. Get another job.

3. Carefully consider going into debt.

4. Don’t cut medical insurance: A major medical expense is cited in more than half of bankruptcy cases as the leading reason for the filer’s financial trouble.

5. Be upfront with your creditors: Many credit card companies and banks have specific programs to help people experiencing financial hardships to pay off their debts.

6. Consider debt settlement or consolidation.

7. Filing for bankruptcy: Don’t turn to bankruptcy until you’ve exhausted all of your possible options. The new laws were passed to prevent people from taking advantage of the bankruptcy system and as such are more complicated. It is very useful to have an attorney help you in your bankruptcy to guide you through the complicated laws.

8. Understand the consequences: Your credit will be affected for 7 to 10 years and your Student loans and Child Support will not disappear.

If you would like to learn more and/or receive assistance with foreclosure, Mortgage Audit, loan modification, bankruptcy or debt settlement, please contact us at (857) 244-1940 or fill out the form on the right.

Tips To Avoid Bankruptcy

admin — Wed, 13 Jul 2011 17:08:45 +0000

Try not to go further into debt by re-evaluating your budget.
Pay off existing debt. With your new budget, try to live below your means. Think to yourself, do I NEED this?
Get another job if you find that you cannot live below your means.
Keep your medical insurance, if you get sick this will help you manage your finances.
Consider Debt Consolidation or Debt Management. These can create lower payments or pay off existing debt at lower amounts.

If you would like to learn more and/or receive assistance with foreclosure, loan modification, bankruptcy or debt settlement, please contact us at (857) 244-1940 or fill out the form on the right.

Short Sales

admin — Fri, 29 Apr 2011 14:36:59 +0000

Short sales are when a homeowner attempts to sell his or her home at a price that is less than the full amount owed to the bank. These sales generally occur as a last ditch effort to try and avoid a full foreclosure proceeding.

Prior to the current economic crisis, banks tend to only approve a short sell when the owner has a hardship, including loss of job or income, forced relocation, death of a spouse or income provider, divorce, or an increase of interest rate that made the monthly mortgage unaffordable. Now, they are more prevalent and outnumber traditional sales in some of the hardest hit market areas.

First, a homeowner must decide they want to sell
The homeowner finds a suitable buyer, submits hardship papers to the bank, and enters into a binding contract.
A short sale has two transactions that occur

1: Between the owner and potential buyer

2: The transaction between the seller and the lender

Most banks will not begin negotiating the 2^nd transaction until the seller has produced a ready, willing, and able buyer.
Short sales can take several months to be completed. Buyers need to be willing to wait patiently.

If you would like to learn more and/or receive assistance a short sale, please contact us at (857) 244-1940 or fill out the form on the right.

Garnishment

admin — Wed, 23 Mar 2011 20:48:28 +0000

If you received a notice about garnishment or been threatened with garnishment, it can be a scary concept. Understanding the process can help you figure out how you want to handle it.

1) You stop paying your creditors.

2) The Creditor is interested in garnishment, which generally does not happen unless you have valuable property such as a vehicle with equity worth more than $2000, regular wages, a house, or bank accounts.

3) The Creditor’s get a court judgment to collect what is owed.

4) A court may order you to appear (summons) for a hearing and supply information regarding your finances.

5) The Creditor’s must send you a letter that includes: a clear statement as to what is owed, a description of exemptions from garnishment, and steps to challenge the garnishment.

6) The Creditor takes the judgment and garnishment order to the local sheriff’s department, and officers get it applied or levied.

Limits

Federal government limits garnishment from your paycheck to a percentage or your disposable earnings. In addition, these sources cannot be garnished: Social Security, Retirement Plans, and Public Assistance, and generally, unless for child support, worker’s compensation and unemployment or disability benefits.

Job Safety

Of course, you are wondering how wage garnishment will affect your workplace. Know that federal does not allow you to be fired because you have one wage garnishment. If you are let go because of your wage garnishment, your employer could be punished with fines of up to $1,000 and imprisonment for up to one year. However, you can be fired for having more than one wage garnishment.

Stopping Garnishment

One way to stop garnishment is to file for bankruptcy. Once you have filed, there is an automatic stay process that will stop the garnishment.

If you would like assistance with determining what would be the best option for you regarding your debts or you would like to file for bankruptcy, please contact us at (857) 244-1940 or fill out the form on the right.

Loan Modification Income Requirements – Don’t Guess

admin — Tue, 22 Mar 2011 20:48:08 +0000

When you apply for jobs you have a general idea on whether you at least have the qualifications for that position. Just like hunting for a job, when you hunt for a loan modification you should know if you meet the qualifications before applying. After all, sometimes you can adjust your income by spending less or getting a roommate or a second job so that you fall within the guidelines the lender has set. The best way to learn this information is to seek an experienced lawyer who will work with you to create the best approval chance.

For example, for the HAMP loan modification, you may be eligible if you meet all of the following:

You occupy the house as your primary residence.
You obtained your mortgage on or before January 1, 2009.
You have a mortgage payment that is more than 31 percent of your monthly gross (pre-tax) income.
You owe up to $729,750 on your home.
You have a financial hardship and are either delinquent or in danger of falling behind.
You have sufficient, documented income to support the modified payment.
You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.

If you would like to learn more and/or receive assistance with loan modification or foreclosure, please contact us at (857) 244-1940 or fill out the form on the right.

Bankruptcy is Not an End All Solution

admin — Wed, 16 Mar 2011 18:54:26 +0000

Bankruptcy is not an end all solution. If you are thinking about filing for bankruptcy you should consider all options before you file that may be better for you. Such options are: Loan Modifications, Debt Management Plans, and Debt Consolidation.

The goal of loan modifications is to change your mortgage loan payments to a monthly payment that you will be able to pay easier.

The goal of debt management plans is to lower your total monthly payments by negotiating a lower interest rate and payment plan with your credit companies.

The goal of debt consolidation is to lower your average interest rate and payments by taking out a new loan with all of your debts at a lower interest rate and with a longer repayment period. This is an option you need to consider before you start missing payments as you get the best interest rates when your credit is the highest.

Bankruptcy should be only the final step in managing debt. There are so many options available before this comes about that only those that have exhausted all other debt repayment plan or debt consolidation options need even contemplate bankruptcy.

Bankruptcy Changes

admin — Wed, 16 Feb 2011 16:52:25 +0000

Bankruptcy is one of the oldest methods used by consumers to get rid of unsecured loans allowing them to not have to pay any money on their debts. However, once a consumer files their credit score plummets and the consumers lose their credibility. Even the creditors are harmed since they lose money and become weaker. They become weaker by losing their financial equilibrium and then they have issues covering their costs. This happens specifically when bankruptcy filings increase, such as now, and their loses can increase to such an extent that they become bankrupt themselves.

This scenario has forced the government to change the bankruptcy laws and thus filling bankruptcy is now more difficult for consumers. For example, consumers are not required to pass a “means test” before they can file for Chapter 7 Bankruptcy, whereas before they could file when ever they would like and they could choose between each type of bankruptcy. In addition, the consumers now have to go through financial counseling sessions before they can file as well.

Despite all the changes in the bankruptcy law, in this economy consumers filing for bankruptcy have risen and keep rising.

If you would like assistance with determining what would be the best option for you regarding your debts or you would like to file for bankruptcy, please contact MATTHEW T. DESROCHERS, ESQ. at (857) 244-1940 or fill out the form on the right.

More People Are Filing Bankruptcy

admin — Wed, 22 Dec 2010 20:19:25 +0000

The Wall Street Journal reported that the recession has affected everyone and that the number of people filing for bankruptcy over 2010 was expected to reach more than a million and half Americans. Since the recession, it has become more common for filers to earn more than $30,000 per year and have a college degree. Twenty percent of filings in 2009 were by this group. This is a 4.1 percent jump from 2006. Last year, 9 % of filers earned over $60,000, an increase of 5.5 percent since 2006.

To File or Not to File

While filing for bankruptcy seems to be a great idea and will give one a clean, fresh start. It may not be the best option for many people. After all bankruptcy, can be humiliating and affect you credit for many years to come. In addition, changes in law have made it more difficult and more expensive to file for bankruptcy.

Other Options

Debt Settlement – Lawyers and Debt Settlement companies can work with you to create a payment plan and negotiate with your credit companies to allow you to pay off your debt at a discounted rate.

Loan Modification – When you own a home and are having difficulty paying your mortgage, a lawyer can help you negotiate the terms of your loan to make the payments more reasonable.

If you would like assistance with determining what would be the best option for you regarding your debts, please contact

MATTHEW T. DESROCHERS, ESQ.
For a free consultation call (857) 244-1940 or fill out the form on the right.

Car Loans After Bankruptcy

admin — Fri, 10 Dec 2010 15:32:49 +0000

After you have filed for bankruptcy, if you want to buy a car, it may be possible that a car loan after bankruptcy could be the right option for you. A Car loan after bankruptcy can help you buy a car even though you have bankruptcy in your past.

As You May Know

Filing for bankruptcy can create a big dent in your credit score. Bankruptcy remains on your credit report for a period of seven years and thus any application for a loan might get rejected due to the bankruptcy filing during this period of seven years.

Car Loans After Bankruptcy Basics

Available after 2 years after Filing:

Car loans after bankruptcy can be available two years after filing for bankruptcy. This reason for two years is for the loan lender to evaluate you on how you have managed yourself during this period post bankruptcy. If they find out that you have not mended your ways and you are leading the same lifestyle as pre bankruptcy, then rest assured that your loan application will be rejected. However, if you have change after that incident and have started taking responsible financial decisions, then there is a good chance that you will be given the car loan.

Can help rebuilt credit rating

If you repay bank loans as per repayment schedule, it can help rebuild your credit report and improve your credit rating. If this is done, you will be on your way to retaining financial stability and also you should not have problems in getting loans in the future.

Higher Interest Rate

The loans typically come at an interest rate which is higher than those who do not have bankruptcy in their past. This is because lenders do still consider extending the loan to the person having bankruptcy in the past as a riskier proposition. However, considering the fact that you are getting the loan and it is a great opportunity for you to improve your credit score, it is definitely not too much of a price to pay.

Online lenders

Online lenders are more lenient in their requirements compared to other lenders, and as such your chances of getting the loan approved generally increases your chances of getting the loan approved.

New Cars versus Used Cars

If you have bankruptcy on your credit report, then it is very difficult if not impossible to get new car loans after bankruptcy. Recently, this mindset is changing and lenders have started accepting see people who have filed for bankruptcy in a new light and are willing to give them a chance.

In conclusion, you can see that car loans after bankruptcy is a great way for past bankruptcy filers to own a car, improve their credit score, and be on their way towards financial recovery.

IF YOU NEED ASSISTANCE WITH BANKRUPTCY

PLEASE CONTACT MATTHEW T. DESROCHERS, ESQ.

(857) 244-1940 or fill out the form on the right.

The Filing of a Bankruptcy Petition

admin — Wed, 03 Nov 2010 14:15:46 +0000

Making a choice to file for bankruptcy is an emotional decision, taking it into your own hands is another demanding step, which needs knowledge of the respective rules involved, assiduousness, tolerance and perhaps support from a bankruptcy attorney. It is recommended that you hire a qualified BANKRUPCTY ATTORNEY who will represent you and make this easier for you. But if you don’t have the means, here are some valuable tips and steps you can follow to file for bankruptcy.

Step One: First of all, you should understand that when you decide to file for bankruptcy, you are engaging yourself in a legal process, which might take a little bit more of your time and money as well. Don’t just throw yourself into it out of frustration or anxiety. Under the new BAPCPA, which was amended three years ago, individual debtors are required to seek for counseling from an entity recognized by the United States Trustee 6 months of the date of the filing of a bankruptcy lawsuit. Thus, ask yourself if you really wish to take up the bankruptcy case on your own or if you require the assistance of a bankruptcy attorney.

Step Two: The next step is to consider which of the two frequent bankruptcy forms will best suit your financial situation. Most people tip for the chapter 7 also known as ‘liquidation’ bankruptcy, which allows you to start afresh. There is also the chapter 13 bankruptcy, the repayment plan for Individuals. In order to make the right decision, interact with people who have had experience in filing for bankruptcy.

Step Three: In order to avoid all the hassles you are likely to face in filing for bankruptcy, it is highly recommended that you consult a bankruptcy lawyer who will help you reconcile your personal documents and file your voluntary petition at the bankruptcy court. Subsequent to this, a Trustee will be reviewing your file to see to it that the information you provided is accurate.

Step Four: Inform your creditors that you are about to file for bankruptcy in order to halt them from proceeding with their bankruptcy lawsuit against you.

Step Five: Schedule a meeting with the various parties implicated in your bankruptcy case, namely your creditors, as well as your creditor’s attorneys.

Advice:

Ensure that you are comfortable and in a good relationship with your creditors and lawyer if you have any; do not lose your nerves. Nonetheless, do not hesitate to hire a bankruptcy lawyer if you don’t have one yet. Some bankruptcy attorneys will require that you pay prior to taking up your case, others will call for installment. But there are some bankruptcy lawyers who are still willing to help you out for free if your financial situation does not permit you to do so.

Make sure that you are well informed about the existing bankruptcy laws prior to filing for bankruptcy.

If you are seeking qualified bankruptcy assistance please contact my office at (857) 244-1940