McBride Law Firm

Free Consultations 318.625.0471

Main Menu

Alexandria Legal Blog

Can you keep your home in bankruptcy? These 3 points will help

Many people neglect to even consider bankruptcy because they're concerned about losing their home. While it's a legitimate concern, there is no guarantee you won't be able to stay in your home after your bankruptcy filing is complete.

There are three points of emphasis to consider:

  • The type of bankruptcy: Generally speaking, Chapter 7 exemptions are less flexible than Chapter 13. So, if you want to increase the likelihood of keeping your home after bankruptcy, you should consider if Chapter 13 would work for you.
  • The amount of equity: With Chapter 7, for example, the bankruptcy trustee focuses on how much equity you have in your home, not what it's worth. Since many people filing for bankruptcy have little equity or are underwater, their property is exempt. The thing you want to watch for is if you have more equity than the exemption allows.
  • The cost of your mortgage: Don't forget about this. If you can't afford your mortgage payment before bankruptcy, it doesn't necessarily mean you can't afford it after. But it's definitely something to look into.

Does it make sense to change your credit card due date?

As you review your credit card account, you may come to the scary realization that you're slipping behind month after month.

As your credit card debt piles up, it's only natural to worry about the impact on your future. This should lead you to look into the many ways to reduce your debt as quickly as possible.

How to stop the harassing phone calls from creditors

Many people who have fallen into debt assume they are helpless against debt collection agencies. They assume these companies have a right to harass them at their leisure. The truth is that you have plenty of options when it comes to prudent debt relief

One debt collection firm, ACM, based out of Australia, went to court and had to pay a fine for undue hardship placed over harassing phone calls. A consumer watchdog group took the firm to court due to seeking out unpaid debt in unfair manners from a single mother and a disabled man. You have options when it comes to seeking relief from such phone calls. 

What happens if you don’t pay your credit card bills?

There may come a point when you're unable to pay your credit card bills. Even the minimum payment has become too much for you to handle. As stressful as it may be, you need to consider all your options for moving forward.

On the surface, it sounds like a good idea to simply ignore your credit card bills. While this may work at first, you should expect your credit card company to take action.

3 tips for rebuilding credit after bankruptcy

Filing for bankruptcy can be a scary process, even if you know it is necessary. One of the most intimidating aspects of declaring bankruptcy is wondering what it does to your credit score. You may fear your credit will be in shambles for years to come – or even forever.

While going bankrupt does impact your credit score, you can build it back up and even get it higher than before by following some simple steps. Here are a few pointers for rebuilding your credit following bankruptcy.

Bankruptcy can save you from these serious financial concerns

Everyone runs into financial difficulties from time to time. However, there may come a time when you face a serious financial concern that has the potential to impact your life in a number of ways.

Bankruptcy has the potential to save you from a variety of serious financial concerns, including these three:

  • Wage garnishment: It's possible a debt collector could take the steps necessary to have your wages garnished. If this happens, you can protect yourself by filing for bankruptcy. This puts an end to garnishments for the time being, giving yourself the opportunity to regain your footing.
  • Foreclosure: A foreclosure notice is scary, as losing your home to the bank could be the worst thing to ever happen to you. Filing for bankruptcy will stop the repossession, which may give you enough time to implement a plan for saving your home.
  • You're buried in debt: If you have more debt than you can handle, such as from using credit cards to cover a lack of income, you may feel that there's no way out. Through a Chapter 7 bankruptcy filing, you can eliminate some or all of your debt once and for all.

There are reasons to choose Chapter 13 bankruptcy

With Chapter 13 bankruptcy, you can use your regular monthly income to repay some or all of your debt. Doing this over the course of three to five years goes a long way in helping you keep your assets.

Here are some reasons to choose Chapter 13 bankruptcy:

  • Avoid foreclosure: If you've received a foreclosure notice, a Chapter 13 bankruptcy can stop the proceedings for the time being. It may even provide the opportunity to catch up on back payments through your repayment plan.
  • Less impact on your credit report: A Chapter 13 bankruptcy will remain on your credit report for seven years. While this sounds like a long time, it's three years less than a Chapter 7 bankruptcy.
  • Lower monthly payments: Through Chapter 13 bankruptcy, you can reschedule some of your secured debts. By extending them over the life of your repayment plan, you may end up with a lower monthly payment. This makes it much easier to meet your obligations.

How to handle post-holiday credit card debt

When you're spending money on your credit card during the holiday season, it's easy to overlook the impact on your future. You assume you'll be able to handle all the debt that comes your way.

Unfortunately, once the holiday season ends, you may find yourself with more credit card debt than you imagined. This leads you to a situation in which you must take immediate action.

3 signs you need to consider bankruptcy

Thousands of people file for bankruptcy every year. Many of these stories fly under the radar because news outlets tend to only focus on companies filing for bankruptcy. One recent local example includes a Louisiana company that owns multiple nursing homes that had to file for bankruptcy. 

No one enjoys thinking about the possibility of filing for bankruptcy. However, it is vital to remain grounded in reality. In some circumstances, it may be the only way to get out of debt, but it is not right for everyone. Here are three signs you need to start thinking about bankruptcy. 

Questions to ask your mortgage lender if you can’t pay

It's never easy to admit, but if you can no longer make your mortgage payments, you need to be honest with yourself. Doing so increases the likelihood of saving your home and leaving yourself in a better financial position later.

The first thing you should do is assess your situation, paying close attention to how far behind you've fallen on your payments. From there, contact your mortgage lender to ask these questions:

  • Can you explain the payments I've missed and where this leaves me? Even if you know how much you owe, you may have overlooked fees like interest and penalties. Speak to your lender to ensure that you know exactly what you are up against.
  • Is there anything I can do to remain in my home? Your mortgage lender can discuss things such as loan modifications, forbearance and refinancing your loan. You may not qualify for all these, but it's critical to at least discuss them.
  • What do I need to know about selling my home? You don't need your mortgage lender's permission to sell, but it's never a bad idea to ask if there's anything you need to know. For example, if you find that you owe more than your home is worth, you might want to discuss the possibility of a short sale with your lender.

McBride Law Firm

McBride Law Firm
301 Jackson Street Suite 101
Alexandria, LA 71301

Phone: 318-625-0471
Phone: 318-625-0471
Fax: 318-445-8066
Alexandria Law Office Map

Back to top