Many people consider bankruptcy because of bills and financial responsibilities that exceed their savings and income. According to the National Association of Realtors, the average monthly amount for mortgages is $1,061, and this can become burdensome. If you have filed for Chapter 13 bankruptcy, though, you may receive an offer from your lender for a modification. These agreements have pros and cons, and there are a few things you should know.
Take advantage of a low interest rate
Because your lender does not want your loan to go into foreclosure, they will likely offer a modification with a low interest rate. After around five years, it may go back up, but it will not exceed the rate specified in your contract or the interest rate qualified buyers are eligible for. Having your interest rate reduced like this, though, can alleviate the burden of a hefty monthly mortgage payment to make.
Revisit filing for Chapter 13 bankruptcy
In such cases, the relief from a modification may make Chapter 13 unnecessary. For many people, though, bankruptcy is not due to any single financial issue — it is the solution to a series of debts and financial burdens. Still, it is worth considering how a modification might or might not impact your decision to file for Chapter 13.
Consider the effect of amortization
Another important factor to take into consideration is the responsibility to taking on the extended amortization that is often included in the modification agreement. This typically entails an additional 40-year agreement, and this may last the remainder of your life. Though a modification may temporarily relieve financial stress, it may also prolong it for years in the long run.
If you are considering Chapter 13 bankruptcy or a mortgage modification, you should be aware of all your options. Contact an attorney for more information and legal advice on handling excessive debts.
A no-interest credit card certainly sounds appealing, but if you have ever taken a credit card company up on such an offer, you may know that things do not always work out in your favor. No-interest credit cards allow you to make purchases without assessing interest on the amount accrued, but only for a specified amount of time.
Once the no-interest window has closed, you will have to pay interest according to your card’s standard annual percentage rate. This can prove problematic if you still have a considerable balance on your account at the end of that grace period. So, before you apply for that no-interest credit card or sign on the dotted line, consider the following.
The card’s APR
If you are considering applying for a no-interest credit card, do your research about its APR, and then check out how it compares to the APR of credit cards you are already using. If it is higher, going this route is probably not a good idea for you, unless you are absolutely certain you can pay the balance off in full before the no-interest period is over.
Additional fees
If the card you are considering is also a rewards card, you may have to pay an annual fee in addition to interest once the grace period ends. The amount of these fees tends to vary based on factors such as how valuable the rewards benefits are.
Spending habits
It also may prove wise to take a good, hard look at your spending habits. It can be all too easy to take advantage of an interest-free credit card. Before you know it, you have racked up considerable debt, and the no-interest period is nearing its end.
Credit card debts are one common cause behind filing for bankruptcy. If you have any doubt about your ability to pay off your credit card balance in full before the no-interest period ends, you may want to reconsider taking advantage of these offers.
Millions of Americans file for bankruptcy every year because they find themselves in over their heads when it comes to debt. Some things that increase debt are out of your hands, such as overwhelming medical bills from an unexpected illness or injury, an unexpected job loss, or lack of the ability to make smart financial choices.
Debt is not limited to those who make poor choices when it comes to spending. Even those who totally prepare for the future may deal with a significant tragic event that changes the course of their lives. The following tips are ways to help you get out of debt when you find yourself in a place you cannot get out of.
1. Accept the problem and stay calm
You can stay in denial about your all-consuming debt or you can accept that you cannot do it on your own and seek help. The more you deny the problem, the worse it can get. It is easy to panic when you face the truth about your financial situation, but stay calm and rest assured that you have options.
2. Unsubscribe to emails about special deals
Online offers and discounts make it way too easy to spend without even thinking about it. If you cannot afford to buy something, remove the temptation from yourself. Stay off online websites and unsubscribe to emails that notify you about special sales.
3. Create a battle plan on three fronts
To combat your debt and determine how to deal with it, you should have a mental, emotional and financial plan. The mental and emotional stress of worrying about finances can take a serious toll on your health. Every step you take to get control of your spending and debt will lessen the load on your shoulders.
Your financial battle plan may include filing for bankruptcy if you just cannot see another way out. Bankruptcy can give you a fresh financial start when the future terrifies you. If you are tired of the worries you carry about debt, speak to an attorney right away.
If the time has come for you to consider naming an executor for your estate, the mere thought of it may be keeping you up at night. You hesitate to put such a burden on your spouse, and your only child lives on the opposite side of the country and is busy with a family of her own. That only leaves one other close family member, Uncle Bob – but is he the right choice?
The duties of an executor
The responsibilities an executor faces could be relatively easy or extremely complex, depending on the size of your estate. Basic duties include filing papers with the court to start the probate process, which determines the validity of your will; taking inventory of the contents of your estate; and using the funds to pay funeral costs, bills and taxes. Your executor will also notify the appropriate agencies and companies about your death, terminate your credit cards and take care of filing your income tax returns. The final responsibility would be to distribute assets to the beneficiaries you named in your will.
The qualities an executor should have
What may be keeping you up at night is that Uncle Bob has never been a particularly astute businessman. He is a researcher; he spends his time in a lab, after all. However, he is calm under pressure, he is admired by many for his common-sense approach to problems and he knows how to keep to a budget. You could do worse, but there is still something nagging at you about Uncle Bob.
Choosing an alternate
While you are considering who to name as your executor, you should also think about a successor, someone who can take over if your first choice is, for some reason, unable to serve. If you prefer, you can also ask the executor you appoint to name a successor; you can always approve or disapprove the choice.
The final decision
One of the qualities you want in your executor is someone who is conservative in terms of managing money. Your Uncle Bob fits this description, and in most respects, you feel he would be a good choice. However, the biggest problem with Uncle Bob as executor has finally occurred to you: This man is 12 years older than you are and may well pass away before you do, so you must cross him off your list. Now who should you choose? The best option may be to select a third party. Stay proactive. Lower your stress level and get good advice by reaching out to an attorney experienced with matters.
If you are struggling to make ends meet, you are not alone. The Administrative Office of the United States Courts reports that there were over 11,000 filings for bankruptcy in Mississippi over a twelve month period ending September 30, 2016.
If considering bankruptcy, it may help to know some of the benefits of the process. Three examples include:
These are just a few of the benefits that can come with an approved bankruptcy petition.
Navigating through the process and weighing the pros and cons can be an intimidating process. As a result, it is wise for those who are considering bankruptcy for debt relief to contact an experienced attorney. Your attorney will review your situation, provide advice to help you get your financial footing and advocate for your legal rights to help you get there.
