Debt Settlement Resources

It probably won’t surprise you, as an Orlando bankruptcy lawyer, I have seen it first hand: Orlando home values are on the decline, according to an article published recently in the Orlando Sentinel.

This decline is not only seen in Orlando, but also most of Florida. In the current economy, everyone seems to owe more on their home than it is worth. Filing bankruptcy can help. Since the decline began, I have been able to assist my clients in wiping out their liability on their 2nd mortgage by filing a motion in their Chapter 13 bankruptcy case. This motion, when granted by the court, effectively “strips” the 2nd mortgage off of my client’s home.

To be eligible for this type of relief, you must be able show, through an appraisal of your property, that the value of the property is less than what is owed on the 1st mortgage. In a recent blog by a well respected Illinois and Wisconsin bankruptcy attorney, David Leibowitz, David points out the options available to people with regard to stripping of a lien (second mortgage) on their home.

A bankruptcy Judge here in Orlando recently issued an opinion stating that a 2nd mortgage can only be stripped in a Chapter 13 bankruptcy filing and is not an option for those filing bankruptcy under Chapter 7. Additionally, in order to receive the benefit of stripping the 2nd mortgage and eliminating your liability on that mortgage, you must successfully make all of your payments under the Chapter 13 and receive your Discharge from the Court.

Eventually, we should start to see a reverse in the declining home values plaguing Orlando, Florida, and the rest of the county. At that time, those who took advantage of the lien stripping option in Chapter 13 bankruptcy and successfully completed their payment plan, will, hopefully, again have equity in their homes.

By filing bankruptcy under Chapter 13, my clients can attain this goal, along with many others, including saving on their car loans and wiping out credit card debt. With the help of an experienced bankruptcy attorney, debt relief is possible.

If you are considering filing for bankruptcy, make sure you hire an experienced bankruptcy lawyer to work for you. Do you have more questions about filing for bankruptcy before you take the plunge? Check out K. Hunter Goff’s FREE eCourse.

Check out MrQuotes.com and find the best deal

Ask anyone you know if they have heard of a Scottish Trust Deed and I guarantee you most of they haven’t. Most people think Trust Deeds or a ‘Deed of Trust’ is to do with the property market, which it is to some degree, but the definition of a Scottish Trust Deed is actually a form of debt help for Scottish residents. Debt has become an increasing problem not only in Scotland, but in the rest of the United Kingdom and in fact the rest of the world. Thanks to the banks, the world economy is in a global meltdown. Whilst the greedy high flyers at the top are sitting back and laughing while the government pumps more money into yet another bailout, people are losing their homes and it’s inevitably the taxpayer who picks up the bill. Yes, debt is here to stay, at least for the next couple of decades I imagine and I’m sure our grand children will have to take some of the burden. Anyway, back to the topic…

What is a Scottish Trust Deed? In a nutshell, it’s a legally binding agreement between you and your creditors to repay what you can afford towards your debts over a specific period, which is usually 36 months (3 years), any debt left over after that period is written off. It is a lot like the Scottish equivalent to an IVA (Individual Voluntary Arrangement) although the criteria is slightly different, but more in your favour actually.

IVA’s are not set at 200 per month… Fact If you were to take out an IVA you would find yourself repaying the debt over a longer period of time, 60 months in fact. You also must be able to afford a monthly repayment of at east 200 and owe over 15,000 to 2 or more creditors. There has been a lot of misleading information in the press or from unscrupulous companies that IVA repayments are set at 200 each month, but to be honest, it also depends on other factors, such as the total amount you owe and if you have equity in a property. The most important factor is you must be able to repay 25% of the total amount you owe.

With the Trust Deed solution the minimum criteria is 150 and you only have to repay 10% of the total debt over 36 months, 15% less and 2 whole years earlier than the IVA debt solution. On top of this with a Trust Deed you only have to owe a minimum of 10,000, 5,000 less than the IVA, so as you can see the Scottish debt solution has distinct advantages over its counterpart. If you are a resident in Scotland, have over 10,000 worth of debt to 2 or more creditors and can afford 150 a month to pay it off your in business!

Trust Deeds are not for everyone… So you have decided to look into this, but keep in mind, Scottish Trust Deeds are not for everyone. They are only meant for people who are struggling to repay their debts and cannot find a viable solution to their debt problems. You may have taken out too much debt, had a pay cut or lost your job to redundancy, all of which would be viable reasons to look into this Scottish Debt Solution. If you own your own home a Trust Deed would be the best option if you are in financial difficulty as it can prevent it from being repossessed by the banks.

Another bonus with the Trust Deed solution is the interest and charges are frozen, meaning your debt will not accumulate and means that the repayment you make each month is going directly to clearing the balance, unlike now where the majority of what you are paying will be going towards straight in the pockets of the banks.

There are downsides though. Your credit rating will be affected during the 3 year period whilst you are in the Trust Deed program and wont recover until long after, but if you are in a serious position with your finances the likely hood of you wanting to obtain further credit after the period is slim as most people would want to steer clear of debt for good! So, on that basis you will probably not require the use of your credit rating. Your reputation will also be damaged, although this is not important to everyone. I think relieving the stress of being in debt actually outweighs this by miles!

For further advice on Scottish Debt Solutions or for more Trust Deed information visit our website. Use our free calculator to see if you qualify.

When it comes to finances, sometimes it’s easy to get in too deep, find yourself deep in debt, and not know how to get out of the situation. If it gets to be too much, it may be a good idea to get professional help. Debt management companies can be the answer to get you back on your feet, whether you’re just beginning to get into trouble and don’t think you need help, or even if you’re overwhelmed and on the verge on bankruptcy.

Debt management companies will work with you to make a financial plan that you can live with and that will satisfy your debtors. Most kinds of unsecured debt qualify for mediation through a debt management company, including money owed to the IRS, medical bills, credit card bills, student loans, and utility bills. Debt management companies can also help with “credit repair,” making sure everything on your credit report is accurate.

A good debt management company will usually provide several services. They will examine your income and expenses and work with you to determine a livable budget while allocating a set amount to put in a special account each month that will go toward paying your debt. Counseling clients on income management is also a part of the services they offer. A “debt management plan,” or DMP, in writing should be provided to clients.

Creditors are used to working with debt management companies, and will cooperate with them to create a repayment plan. It is in the creditor’s best interest to have your debt paid, and they will often waive fees, lower interest rates, and reduce monthly payments to ensure the debt is paid. Money you deposit into the specified account is then used to pay the creditors on a regular basis- monthly, semi-monthly, or weekly.

Collection agencies and creditors will stop calling for payment and stop sending bills when you work with a debt management company. They know that by working with the debt management company, they are more likely to be paid, and are more than happy to make arrangements.

When you choose a debt management company, check with the Better Business Bureau in the company’s city and make sure they are accredited. Carefully read the service agreement and study their fee structure. Remember that Non-Profit just means the company doesn’t pay taxes. Ask friends for referrals; word of mouth is a good indicator of reliability, and a reliable company can turn a nightmare into relief.

Next : Debt Management

With the excess lending practices of the last few decades, before the recession caught up to us, many people have found themselves in deep waters financially. After all, it’s easy to spend money offered to you today that you hope to have in the future to pay back. But what if that money offered gets you so far into debt that you can’t see the light at the end of the tunnel? Whom can you turn to for help with your debt?

Debt repayment is not a “one size fits all” kind of plan. You have options, but only you can determine which the best for your circumstances is. There are debt management companies, debt consolidation companies and loans, or you can try to do it yourself. Examine your credit report so you know exactly where you stand. Can you handle repayment on your own? Do you need professional help and how much will pay for it? Determine what affect each kind of repayment will have on your credit.

You will have to contact your creditors to make self-payment arrangements if you decide to go it alone. Most credit card companies and creditors are more than happy to work with you to make payment arrangements. They may even offer a settlement arrangement that could cut your bill in half. While this will negatively affect your credit score, it does have advantages. It can free up money to pay other debts and could save you from bankruptcy. If you do this for several of your debts, you could save thousands of dollars.

A debt management company can be a great tool to get debt under control. A debt management company will examine your finances and create a DMP, or debt management plan for you, contact your creditors for you to work out a repayment plan, and help you determine an amount you can pay each month for your debts. This amount will go either into a special account or directly to the debt management company to pay on your behalf. Fees charged by debt management companies vary and some are less than reputable, so be sure to research the company and examine any agreements they offer.

When you work with a debt settlement company, they will make the debt settlement arrangement with your creditors for you, and if they are good, they will get you better terms than you would if you tried on your own. They will however, charge fees for their services, usually based on the amount you owe. Try to find a reputable debt settlement company that doesn’t charge until your dept is paid. Make sure they are listed with the Better Business Bureau and are accredited.

Whatever method you decide to use, take steps to keep yourself from falling into the same spending habits in the future. While a debt management company can give you financial counseling, you can easily examine your own finances and discover many ways to keep you out of debt in the future.

Find Out More : Debt Help

American consumers are now pursuing debt solutions in droves because of both the unsecured debt they have accumulated and the predominantly difficult financial climate caused by the recession. Unemployment, underemployment, widespread foreclosures and tight credit guidelines have taken a firm grip as the cost of living has continued to increase. The economic climate that prevailed prior to the recession, in contrast, was characterized by loose credit policies and liberal consumer spending behavior. These same consumers are now experiencing financial hardship which causes many of them to make only the minimum monthly payments on their high-interest debt, causing many to ponder their bleak decades-long repayment prospects. Given this situation, it is plain that consumers are in need of potent solutions.

Thrift and discipline is a debt solution that can be sufficient for those with relatively minor debt problems. By combining the reduction of unnecessary expenses with the application of the realized savings toward the debt, these minor debt problems can potentially be overcome. Those with more serious debt problems will probably require thrift and discipline in combination with more potent debt solutions.

Refinancing a home or taking out a home equity line of credit (HELOC) and using the proceeds to pay off the high interest debt can be a potent solution. The problem lies in the difficulty of accomplishing either of these solutions given today’s battered housing market. Equity levels have shrunk or disappeared entirely, making these loans very hard to come by.

Another debt relief solution that has been getting a lot of attention is credit counseling and the access it offers to a debt management plan (DMP), which has many attractive features for consumers plagued by high interest unsecured debt. A DMP will also protect the consumer’s credit score. A solution with the potential to provide even more extensive relief than credit counseling is debt settlement, also known as debt negotiation. Experience has shown, though, that debt settlement can be frustrating as it causes many to leave the program prematurely. Some of these companies have proven to be unethical as well.

Bankruptcy is a solution of last resort for many due to the dire credit consequences which can last for 7 to 10 years. Still, the relief offered by a Chapter 7 bankruptcy may be the only real solution for those completely overwhelmed by their debt and able to pass the 2-part “means test” instituted in the 2005 reforms. Otherwise, a Chapter 13 court-determined repayment plan may be a bitter pill to swallow given the stiff penalty also paid in ruined credit.

As you can see, there are solutions available for those who have found themselves in serious trouble with their unsecured debt. If it is at all possible, it is recommended that thrift and discipline be the sole solution utilized to solve the problem. Credit counseling should be considered by those who are intent on finding a solution that will not negatively impact the credit score.

Author excerpt: Jackson Roberts is an experienced debt analyst and has been helping consumers eliminate credit card debt for over 12 years. He hopes to educate indebted consumers about the many credit card debt solutions available.