Modesto Bankruptcy Lawyer Blog

The Sacramento Bee recently chronicled the experiences of two couples struggling with credit card debt. Both couples used a debt solutions company and took more than five years to pay off their debts. Evaluating your options is recommended before you sign on with any agency claiming to make you debt-free.

Contacting a bankruptcy lawyer in Modesto could have given these couples a fresh start much sooner.

Most people think of bankruptcy as something to be ashamed of, but it's not. Consumers that have fallen on hard times because of medical bills, real estate debt and credit card debt deserve a new start. An experienced bankruptcy lawyer can explain the two types of bankruptcy options a consumer has. One can wipe out most of your debts immediately so you can start anew. Credit counseling, which won't save your credit rating, is another option. Your credit report will show late payments that will stay on the report for years. This will greatly affect your ability to obtain loans.

The state Department of Corporations keeps on eye on the credit counseling agencies in California.

Here are some cautionary tips and red flags regarding credit counseling agencies:

-Considerable upfront fees - most places charge you a set-up fee and then add on additional fees.

-Misplaced or diverted payments - some companies won't tell you your first month's payments are actually fees. So your money going to the credit counseling company and not your creditors. Missed payments mean bad marks on your credit report, which will last for years.

-Idealistic promises - no company will wipe out your debt for free without damaging your credit rating. Supervised payment plans involve systematically paying off your loans.

-No accreditation - agencies that aren't accredited by the National Foundation for Credit Counseling and/or Association of Independent Consumer Credit Counseling Agencies should be avoided. Accredited credit counseling agencies meet minimum standards for free or low-cost confidential services.

Bankruptcy laws give legal protection that most other debt-relief options don't; personal bankruptcy shouldn't be viewed as a last resort, but as a new beginning. Your own situation will determine if bankruptcy is the right choice for you. Let an experienced bankruptcy lawyer assess your financial needs and explain your options.

Continue reading "Those Considering Debt Solution Agency should speak with Modesto Bankruptcy Attorney " »

The Homeownership Preservation Foundation recently reported that California accounts for almost 25 percent of all the foreclosure rescue scams out there that aim to victimize distressed borrowers.

One of the best ways to potentially save your house from foreclosure in Modesto is filing for Chapter 13 bankruptcy. Modesto Bankruptcy Lawyers have seen many people who fall into traps that sound too good to be true to save their homes. Bankruptcy laws are designed to help people who have fallen on hard times and need the consumer protections afforded by bankruptcy to regain solid financial footing.

According to The Homeownership Preservation Foundation, a non-profit group that aims to help homeowners who are struggling, California callers totaled 22 percent of the calls to the group's hotline for homeowners victimized by a foreclosure rescue scam. Beyond California, Florida came in with 7 percent of calls. Los Angeles ranked in the top five of cities nationwide, showing that the problem stretches statewide, including in Modesto.

Homeowners should understand that the Federal Trade Commission in February issued a rule prohibiting the payment of fees upfront for a company to negotiate a reduction in mortgage payments. Companies still openly ask for fees with an average of nearly $2,600 to modify a mortgage. In many cases, no work is done and the money is lost.

Stopping foreclosure can be as easy as making the decision to file for Chapter 13 bankruptcy in Modesto. But before making that decision, you should consult with Modesto Bankruptcy Lawyers to decide if that's your best option.

What Chapter 13 bankruptcy filing allows people to do is keep big assets, such as houses, while still enjoying protection from creditors. Filing for bankruptcy immediately halts the foreclosure process and alerts creditors they must back off. And you can continue to live in your home during the process.

The purpose of Chapter 13 bankruptcy is to come up with a payment plan that lasts several years to satisfy your debts.

Bankruptcy is designed to help people get back on track financially. And if you're considering filing for bankruptcy, don't feel like you're alone.

According to the American Bankruptcy Institute, more than 353,000 Americans filed for bankruptcy in the first quarter of 2011. More than 101,000 filed for Chapter 13 bankruptcy to protect their home from foreclosure or because they make too much to qualify for Chapter 7 bankruptcy. In the last three years, bankruptcy filings have increased from about 1.1 to 1.5 million per year.

Continue reading "California Tops Nation in Foreclosure Rescue Scams; Protect Your Modesto Home" »