how bankruptcy may help you

Are you aware that if you are late in your payments your credit card company will raise your interest rate? 

If you carry a balance on your credit card, the interest that you owe is compounded daily. 

Don’t get caught in the endless cycle of debt. 18%, 21%, 29%, you will be paying interest charges, late charges and over limit charges for years and the bill will not go down!

Personal loans are a lot like credit cards.  The main difference is that you get your money up front, that is, after the lender takes their fees, costs and sometimes a set percentage. 

With high interest loans you just keep on paying. There are finance charges, loan origination costs and other hidden costs that just about guaranty that you will wind up paying more charges than the money you receive.

Sounds pretty good?  That island or ski vacation that you have been dreaming of for years.  Now you can take that vacation every year.  But, things change and you may not want to go to those places, the week they say you can go.  Or, you may not be able to go because the kids are in school, or the boss will not let you take off.  Or, you just don’t like that island or mountain any more and you want to go somewhere else. 

Getting out of a time share is tough. Once these companies have you on the hook, they will not let go.  Exit plans won’t work, bankruptcy does.  

Don’t get burned by your electric, gas or oil company.  Cable, telephone, gas, oil and electric bills are included when you file bankruptcy.

Stay healthy and this will not be an issue for you. Eat your veggies and get eight hours of sleep. (If only life were this simple). 

But, life happens and you may wind up with a medical emergency, chronic illness or need an operation.

Staying healthy is not cheap.  And, that insurance you have, assuming you can afford it, does not begin to cover your bills.

No need to get even sicker.  With medical bills there is no end to them.

There are three things that can be accomplished with car loans in a bankruptcy.  One or more may apply to

you.  

1. If you are paying a high interest rate you can lower it to a fair market rate.  
2. In some instances you can even lower the amount you have to pay on the loan to present market value of the vehicle.
3. Surrender the vehicle and owe nothing. 

You cannot keep the vehicle and not pay.  There are no free rides.

They are covered.

This is also an area in which bankruptcy can help you make a bad situation better.

You may qualify for a modification through loss mitigation. This a process in which documentation is submitted about your financial situation and a determination is made if you are a candidate for a mortgage modification. 

In some cases your second mortgage or home equity loan can become an unsecured debt.