Bankruptcy will not get Your Finances back on Track

clip art men holding FACT signs

 

 

 

Cape Coral, Fl. We got an email sometime back with the subject line of “Bankruptcy will get your finances back on track.” People think that a bankruptcy will cleanse them of their debts. That is a myth. Here is why.

Do you owe more than your home is worth and want to avoid bankruptcy ? You can avoid bankruptcy with a short sale and get all the upside down mortgage debt forgiven.

Yes, it’s true, that a Chapter 7 Bankruptcy will release a debtor of all debts. The problem is that the bankruptcy laws were changed in 2005.

This law makes it much harder to file a Chapter 7 Bankruptcy. Now the judges have to steer debtors towards a Chapter 13. What does Chapter 13 bankruptcy mean?

It means that a debtor will have to repay part (fi not all) of their debts. In addition, the debtor has their finances managed by the bankruptcy trustee. And the debtor has to pay that trustee!

If a person just stops paying their debts, then they can actually pay less money than they would with a Chapter 13 bankruptcy. Fortunately the laws are written in your favor. The debt collection process is tough.

Most big companies don’t have the stomach to do the hard work of collecting money. That is why they farm that hard work out to a collection agency. What does the collection agency do? They just call the debtor over and over again.

Very few collection agencies are going to do what is actually necessary to force the borrower to pay. And that is to file a lawsuit. If they ever do file a lawsuit, the court system is so backed up that it is hard to get a judgment. And what good does a judgment do them?

Statistics show that only 20% of all judgments ever get collected. Even if they attempt to garnish your wages, you can contest their garnishment. You can stop paying your unwanted debts, ignore the debt collectors and in 2-3 years be back on track. At that time you will be much better off versus a bankruptcy which stays on your credit for 7 years.

If you are short selling your property, then you need a persistent, experienced short sale agent. You can call me at (239) 560-3149. When you call, I will explain how the process works in detail and answer any questions you might have.

Thanks for reading this, Donna Bishop Realtor my phone # is 239-560-3149 or email me donnabishoprealtor@gmail.com

If you or any one you know are in need of real estate advice, please do not hesitate to contact me.

 

 

About donnabishoprealtor@gmail.com

Awesome Service: I make dreams come true. I am a Real Estate Consultant. I place great value on the needs, expectations and goals of all my clients whether buying or selling. By helping they find their perfect solution. I will truly listen to you. I have 33+ years experience in all phases of real estate. I am a Loan Modification Specialist, a Short Sale Expert, and a Successful Negotiator. A certified Senior Real Estate Specialist. Former Owner/Broker of A & B Mortgage Brokers of Fl. Plus a former Appraiser. A Professional Realtor. This experience and knowledge gives me the confidence to advise you correctly. I want you to have an Awesome Experience so you will recommend me to all the people you care about. After all, a referral is sending someone you care about to someone you respect.

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