Blogs
A continuación se muestra una actualización del Programa de Fideicomisarios de los Estados Unidos con respecto al Programa de Asistencia de Emergencia para el Alquiler a partir de septiembre de 2021. Esta información se refiere al alivio de la pandemia de COVID-19 tanto para inquilinos como para propietarios. Es posible que pueda aprovechar las opciones para mantener el control de su propiedad y su situación financiera.
Si usted es un inquilino y está teniendo problemas para pagar el alquiler o es un propietario que ha dejado de devengar ingresos de alquiler debido a los retos presentados por la pandemia de COVID-19, podría recibir ayuda. Por medio de fondos provenientes del programa de Asistencia de Emergencia para el Alquiler (ERA por sus siglas en inglés) del Departamento del Tesoro de EE.UU., existe un sinnúmero de programas locales y estatales que brindan ayuda, incluso asistencia financiera, a aquellas personas que estan luchando para llegar a fin de mes. A continuación encontrará los enlaces para recibir más información sobre el programa ERA en su región, incluyendo cómo funciona y quién puede recibir ayuda, al igual que otra información importante que podrá ayudarle a superar estos momentos difíciles. El programa ERA puede variar según la región, ya que los estados tienen la flexibilidad de adecuar los programas a las necesidades de sus comunidades locales.
Para obtener más información sobre los programas de asistencia, visite: https://www.consumerfinance.gov/es/coronavirus/asistencia-hipotecas-y-viviendas/
Para los enlaces del programa ERA en su región, visite: https://www.consumerfinance.gov/es/coronavirus/asistencia-hipotecas-y-viviendas/protecciones-arrendatarios/encuentre-ayuda-para-pagar-renta-y-servicios/
Para encontrar respuestas sobre las preguntas más frecuentes, visite:
Para los inquilinos: https://www.consumerfinance.gov/es/coronavirus/asistencia-hipotecas-y-viviendas/protecciones-arrendatarios/asistencia-de-emergencia-a-inquilinos/
Para los propietarios (en inglés): https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/help-for-landlords/
Para hablar sin costo alguno con un asesor de vivienda aprobado por el Departamento de Vivienda y Desarrollo Urbano sobre sus opciones, un plan de acción o ayuda para solicitar la asistencia de emergencia para el alquiler, llame al (800) 569-4287 o visite (en inglés) https://www.consumerfinance.gov/find-a-housing-counselor/.
For the english version, click here.
The post PROGRAMAS DE ASISTENCIA DE EMERGENCIA PARA EL ALQUILER appeared first on Allmand Law Firm, PLLC.
Below is an update from the United States Trustee Program regarding the Emergency Rental Assistance Program as of September 2021. This information is regarding COVID-19 pandemic relief for both renters and landlords. You may be able to take advantage of options to keep you in control of your property and your financial situation.
“If you are a renter having trouble paying your rent or a landlord who has lost rental income due to challenges presented by the COVID-19 pandemic, help may be available. Through funding from the U.S. Department of the Treasury’s Emergency Rental Assistance (ERA) program, there are a wide variety of state and local programs that offer assistance—including financial assistance—to those who are struggling to make ends meet. Provided below are links to learn more about ERA programs in your local area, including how they work and who is eligible, as well as other important information to help you navigate these difficult times. ERA programs can vary based on locale since flexibility is given to states to develop programs that best suit the needs of their communities.
For more general information on assistance programs, visit: https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/
For ERA program links in your local area, visit: https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/renter-protections/find-help-with-rent-and-utilities/
To get answers to frequently asked questions, visit:
For Renters: https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/renter-protections/emergency-rental-assistance-for-renters/
For Landlords: https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/help-for-landlords/
To talk with a no-cost Department of Housing and Urban Development-approved housing counselor who can help you understand your options, make an action plan, and even help you apply for rental assistance, call (800) 569-4287 or visit https://www.consumerfinance.gov/find-a-housing-counselor/.”
Para la versión en español, haga click aquí.
The post Emergency Rental Assistance Program- UPDATE appeared first on Allmand Law Firm, PLLC.
Below is an update from the United States Trustee Program regarding the Emergency Rental Assistance Program as of September 2021. This information is regarding COVID-19 pandemic relief for both renters and landlords. You may be able to take advantage of options to keep you in control of your property and your financial situation.
“If you are a renter having trouble paying your rent or a landlord who has lost rental income due to challenges presented by the COVID-19 pandemic, help may be available. Through funding from the U.S. Department of the Treasury’s Emergency Rental Assistance (ERA) program, there are a wide variety of state and local programs that offer assistance—including financial assistance—to those who are struggling to make ends meet. Provided below are links to learn more about ERA programs in your local area, including how they work and who is eligible, as well as other important information to help you navigate these difficult times. ERA programs can vary based on locale since flexibility is given to states to develop programs that best suit the needs of their communities.
For more general information on assistance programs, visit: https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/
For ERA program links in your local area, visit: https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/renter-protections/find-help-with-rent-and-utilities/
To get answers to frequently asked questions, visit:
For Renters: https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/renter-protections/emergency-rental-assistance-for-renters/
For Landlords: https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/help-for-landlords/
To talk with a no-cost Department of Housing and Urban Development-approved housing counselor who can help you understand your options, make an action plan, and even help you apply for rental assistance, call (800) 569-4287 or visit https://www.consumerfinance.gov/find-a-housing-counselor/.”
Para la versión en español, haga click aquí.
The post Emergency Rental Assistance Program- UPDATE appeared first on Allmand Law Firm, PLLC.
If you’ve been having financial problems and need help getting them under control, chances are you’ve heard of filing for bankruptcy. But if you’re not familiar with the process of filing for bankruptcy, don’t worry; it’s not as scary as it sounds. You will be unable to make sense of it all on your own.; you need to hire an experienced bankruptcy attorney.
What Is Chapter 13 bankruptcy?
Alternatively, a chapter 13 bankruptcy is referred to as a wage earner’s plan. It allows people with a stable source of income to devise a strategy for repaying all or a portion of their obligations. Under this chapter, debtors submit a repayment plan to creditors, including installment payments over three to five-year periods.
Chapter 13 has a lot of benefits over chapter 7 liquidation for people. Perhaps most importantly, chapter 13 allows people to avoid foreclosure on their houses. Individuals may halt foreclosure proceedings and possibly cure overdue mortgage payments over time by filing under this law.
They must, however, continue to make all mortgage payments due under the chapter 13 plan on schedule. Chapter 13 also has the advantage of allowing people to restructure and prolong secured obligations.
This may result in a reduction in payments. Chapter 13 also has a unique clause that protects third parties jointly and severally responsible for “consumer debts” with the debtor. This clause may protect co-signers.
Finally, chapter 13 operates similarly to a consolidation loan, with the person making plan payments to a chapter 13 trustee, who subsequently distributes funds to creditors. Individuals seeking chapter 13 protection will have no direct interaction with creditors.
How do I get started with chapter 13?
Confirm that Chapter 13 is the appropriate option.
The majority of people file for bankruptcy under Chapter 7 or Chapter 13. Both have distinct characteristics that aid filers in resolving specific issues. For example, a Chapter 13 bankruptcy allows you to make up missed home loan or vehicle payments of loan and avoid a house foreclosure or automobile seizure. The bankruptcy Chapter 7 does not have a comparable provision.
Conduct a debt analysis.
When your credits are too large, you may be unable to qualify. Chapter 13 imposes limitations on the debt amount that you may owe. Additionally, some obligations, for example, taxes, home loans, and arrears alimony, must be fully paid within the 3-5 year payback schedule.
If you lack the financial means to comply with the necessary payment, you may not offer a viable plan.
Calculate the current market value of your property.
Before filing, you will need to determine how many properties you possess and how many of them are exempt from bankruptcy. While you retain ownership of all real states, you must pay some creditors value equivalent of the worth of your non-exempt property.
You’ll include the value of non-exempt property in the Chapter 13 bankruptcy plan payment.
Determine your revenue.
Your income must meet your monthly living costs, any debts included in your plan, and the value of any non-exempt property you want to retain. If you do not have sufficient money, the court will not allow you to continue.
Complete the bankruptcy paperwork.
After determining your eligibility, you must input your financial information into formal bankruptcy papers and create a repayment plan.
Complete the mandatory pre-filing training.
Individuals filing for bankruptcy must first complete a credit counseling course. When you’re finished, you’ll get a certificate to provide with your bankruptcy papers.
Submit your forms and pay the applicable cost.
Once you’ve verified and prepared everything, it’s time to submit your paperwork, certificate, and plan with the bankruptcy court to begin the process. Additionally, you’ll pay the bankruptcy filing cost.
Provide documentation to the trustee establishing your income and other assets.
The facts included in your official papers are cross-checked against bank statements, pay stubs, and tax returns, among other documents, that you will provide after your filing.
Appointment to two hearings.
You’ll meet with the bankruptcy trustee assigned to handle your case at the 341 meeting of creditors within a few weeks after filing. The trustee will review your identity, official documents, payback plan, and supporting evidence. Creditors are also welcome to attend and ask questions (but rarely do).
Immediately after this meeting, you or your attorney will go before a bankruptcy court for a confirmation hearing during which the judge will determine whether to approve (confirm) your plan.
Before it, a creditor may protest by filing a judicial objection. The judge will determine whether to affirm the proposal after reading written complaints and considering any arguments offered at the hearing.
Pay your bills.
Within 30 days, you must start making payments underto your repayment plan. If you do not make your payments on time, the court will dismiss your case.
Attend the post-filing seminar.
You’ll want to attend the second mandatory class—the debtor education course—and submit the certificate before finishing your repayment plan.
Obtain a discharge from bankruptcy.
After finishing your plan, you will be discharged from bankruptcy. The discharge absolves you of any responsibility to repay any outstanding amount on qualified unsecured obligations (some unsecured debts, such as student loan arrears, are not dischargeable). As long as you’ve made the payments specified in the plan, you’re finished. Congratulations!
You may anticipate following all of these procedures; nevertheless, circumstances may occur that need you to return to court. For example, if your income decreases, you may be able to petition the court for a reduction in your payments.
When to retain the service of a chapter 13 bankruptcy attorney?
A chapter 13 bankruptcy lawyer can make sense if you have a low income, are behind on your mortgage payments, or are in perks of foreclosure. If your income is above the median, you will probably have to hire an attorney to handle your case.
Chapter 13 bankruptcy is a lengthy legal procedure, and you won’t be able to do it independently. The law requires that you attend some courses before filing bankruptcy, and bankruptcy attorneys teach these courses. Chapter 13 bankruptcy lawyers are also required to take an ethics course.
Another important reason is if creditors are harassing you. Debt collectors have all kinds of tricks to get money out of people: threats, intimidation, lawsuits, garnishments, foreclosures, repossessions, and the list goes on. Debt collectors have a lot more tricks than the average citizen has.
But the debt collector’s main power is a delay. And they do it with legal tricks. You can hire a lawyer to fight back. Contact Northwest Debt Relief Law Firm today to find out if Chapter 13 bankruptcy is right for you. NWDRLF has bankruptcy lawyers ready to help. We help people file for bankruptcy relief. We are serving the Cities of Portland, Salem, and Medford, and the Surrounding Areas.
Got Debt? Consult a Chapter 13 Bankruptcy Attorney Today!
After reading this essay, you should know more about Chapter 13 bankruptcy. This form of bankruptcy is meant for individuals and businesses to recover from debts they cannot pay. With the proper guidance and help, filing for bankruptcy can help you get out of financial trouble. Schedule a consultation with a Portland bankruptcy lawyer today!.
.fusion-body .fusion-builder-column-0{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-0 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1024px) {.fusion-body .fusion-builder-column-0{width:100% !important;order : 0;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:850px) {.fusion-body .fusion-builder-column-0{width:100% !important;order : 0;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}.fusion-body .fusion-flex-container.fusion-builder-row-1{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}
The post How To File Chapter 13 Bankruptcy appeared first on Portland Bankruptcy Attorney | Northwest Debt Relief Law Firm.
NAVY VETERAN’S STUDENT LOANS RULED NONDISCHARGEABLE BY A FEDERAL DISTRICT COURT JUDGELast year, a Navy veteran’s student loans, totaling $221,000 were discharged in bankruptcy by Southern District of New York Chief Bankruptcy Judge Cecilia Morris. The citation to the case is In re Rosenberg, 610 BR 454 - Bankr. Court, SD New York 2020. The student loans resulted from the veteran attending college and law school. Judge Morris, ruled that the $221,000 of student loans were an undue “hardship”to the veteran and that they would be discharged in his chapter 7 personal bankruptcy filing. Chief Judge Morris wrote in her opinion discharging the student loans that “she wouldn't perpetuate "myths" that it's impossible to discharge student debt through bankruptcy”.A federal court judge recently reversed that decision. A bankruptcy court decision, like those rendered by a bankruptcy judge, can be appealed to a Federal District Court. The student loan creditor appealed Judge Morris's decision, and it was reversed. The case has been remanded back to Bankruptcy Court for further hearings on the issue of undue hardship. Kevin Rosenberg, the veteran, was devastated by the decision. The Federal judge reversed that decision because Mr. Rosenberg had failed to demonstrate undue hardship using the Brunner standard. According to Brunner, "undue hardship" occurs when debtors cannot maintain a minimum standard of living, their circumstances will not improve, and they have made a good-faith effort to repay their student loans.An excellent article about this topic can be found on the Business Insider website at https://www.businessinsider.com/veteran-student-loan-debt-forgiveness-revoked-bankruptcy-discharge-2021-10. The Brunner standards are so difficult to meet and the cost of litigation is so high that most debtors do not attempt to discharge their student loans in personal bankruptcy. In this case, Mr. Rosenberg was the exception. As shown in this case, student loan borrowers are at a disadvantage when attempting to discharge their student loans on the basis of bankruptcy. Certain lawmakers, however, are advocating for making the discharge of student debt easier in bankruptcy, and in August this year, Senate Majority Whip Dick Durbin and Texas Sen. John Cornyn introduced the FRESH START Through Bankruptcy Act of 2021. After 10 years, this bill would enable borrowers to discharge federal student loans through bankruptcy. Prior to a law change, student loans that were outstanding for 7 years could be discharged in bankruptcy. According to this author, bankruptcy is a mechanism for the discharge of many types of debt and student loans should be able to be discharged with certain limitations and conditions. The proposed FRESH START legislation is a good step in that direction. James Shenwick 212 541 6224 [email protected]
Long Beach Post reports that a federal judge froze $2.4 million in assets for Urban Commons Queensway founders, Taylor Woods and Howard Wu. This freeze in assets in based on Wu & Woods using COVID relief funds that were meant for the Queen Mary for “wrongful purposes.”
U.S. Bankruptcy Court Judge Christopher Sontchi stated that Woods and Wu applied for the protection program loan without their company’s consent and that the two men “misrepresented or lied” to the United States government so they could receive money meant as a protection program loan for the Queen Mary ship, but use it for wrongful purposes instead. Woods says the loan was applied for by mistake and the two said, “There was never any intention to do anything inappropriate by any party involved”. Sontchi contradicts this statement by saying the two men knowingly made false statements in order to receive the loan from the Small Business Association, transferred the money to another company, and then made the funds essentially disappear.
From the article:
“The judge also noted that attorneys for Urban Commons Queensway have submitted to the bankruptcy court evidence of multiple lawsuits and judgments against Woods and Wu for ‘fraud, breach of repayment obligations, and other loan defaults.'”
This fraudulent evidence includes Woods & Wu falsely promising to develop a hotel in order to recieve the lease to the Queen Mary in November 2016, ignoring warnings from a city auditor and approving a $23 million bond to jumpstart repairs on the ship, and essentially driving their company into the ground and into bankruptcy.
The Urban Commons Queensway bankruptcy is due to the exorbitant losses felt by many who were connected to the company, some who poured donations and savings into the Queen Mary. Many of these investors had to resort to filing lawsuits against the company, which forced the company to file for bankruptcy.
The Queen Mary is now back in the hands of the city for the first time in 40 years. The ship is still closed due to the repairs needed to the ship and the COVID-19 pandemic. Many Long Beach locals are upset by the behavior of Woods & Wu and feel it’s a betrayal of the communities trust.
.fusion-button.button-1 {border-radius:2px;}Read The Full Article.fusion-body .fusion-builder-column-0{width:100% !important;margin-top : 0px;margin-bottom : 0px;}.fusion-builder-column-0 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1138px) {.fusion-body .fusion-builder-column-0{width:100% !important;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:900px) {.fusion-body .fusion-builder-column-0{width:100% !important;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}.fusion-body .fusion-flex-container.fusion-builder-row-1{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}
The post Bankruptcy Judge Freezes $2.4 Million In Assets For Ex-Operators Of Queen Mary appeared first on Allmand Law Firm, PLLC.
Long Beach Post reports that a federal judge froze $2.4 million in assets for Urban Commons Queensway founders, Taylor Woods and Howard Wu. This freeze in assets in based on Wu & Woods using COVID relief funds that were meant for the Queen Mary for “wrongful purposes.”
U.S. Bankruptcy Court Judge Christopher Sontchi stated that Woods and Wu applied for the protection program loan without their company’s consent and that the two men “misrepresented or lied” to the United States government so they could receive money meant as a protection program loan for the Queen Mary ship, but use it for wrongful purposes instead. Woods says the loan was applied for by mistake and the two said, “There was never any intention to do anything inappropriate by any party involved”. Sontchi contradicts this statement by saying the two men knowingly made false statements in order to receive the loan from the Small Business Association, transferred the money to another company, and then made the funds essentially disappear.
From the article:
“The judge also noted that attorneys for Urban Commons Queensway have submitted to the bankruptcy court evidence of multiple lawsuits and judgments against Woods and Wu for ‘fraud, breach of repayment obligations, and other loan defaults.'”
This fraudulent evidence includes Woods & Wu falsely promising to develop a hotel in order to recieve the lease to the Queen Mary in November 2016, ignoring warnings from a city auditor and approving a $23 million bond to jumpstart repairs on the ship, and essentially driving their company into the ground and into bankruptcy.
The Urban Commons Queensway bankruptcy is due to the exorbitant losses felt by many who were connected to the company, some who poured donations and savings into the Queen Mary. Many of these investors had to resort to filing lawsuits against the company, which forced the company to file for bankruptcy.
The Queen Mary is now back in the hands of the city for the first time in 40 years. The ship is still closed due to the repairs needed to the ship and the COVID-19 pandemic. Many Long Beach locals are upset by the behavior of Woods & Wu and feel it’s a betrayal of the communities trust.
.fusion-button.button-1 {border-radius:2px;}Read The Full Article.fusion-body .fusion-builder-column-0{width:100% !important;margin-top : 0px;margin-bottom : 0px;}.fusion-builder-column-0 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1138px) {.fusion-body .fusion-builder-column-0{width:100% !important;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:900px) {.fusion-body .fusion-builder-column-0{width:100% !important;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}.fusion-body .fusion-flex-container.fusion-builder-row-1{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}
The post Bankruptcy Judge Freezes $2.4 Million In Assets For Ex-Operators Of Queen Mary appeared first on Allmand Law Firm, PLLC.
“Diane told me how to file a complaint against Scott Forrester and ask the State Bar for my money back.” D.B.
Diane and Jay have been wonderful to work with, they are really the best. I found them after paying Scott Forrester and then found out he was disbarred. Diane told me how to file a complaint and ask the State Bar for my money back. She then helped me file a bankruptcy and stop my creditor from garnishing my wages. Wow – she is an angel. D.B.
.fusion-body .fusion-builder-column-0{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-0 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:980px) {.fusion-body .fusion-builder-column-0{width:100% !important;order : 0;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-0{width:100% !important;order : 0;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}.fusion-body .fusion-flex-container.fusion-builder-row-1{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}
The post Diane and Jay are the Best appeared first on Diane L. Drain - Phoenix Arizona Bankruptcy Attorney.
How can I get out of debt in Oregon?
People facing debt difficulties and want to get out of it must make a clear choice to do something about it. This decision must be accompanied by a firm determination to see through to the end of the debt reduction process.
Debt reduction is not a one-way street to financial independence. The usual debtor has several options, all of which have advantages and disadvantages. A skilled financial advisor or a credit counselor can advise you on the best course of action, one that is both pleasing to you and your creditor.
- How can I get out of debt when in Salem?
- 5 Primary Debt Relief Options
- What you should know before applying for debt relief
- Speak with an Oregon Bankruptcy Lawyer Today!
5 Primary Debt Relief Options
There are five basic ways to reduce debt. Any of the others will fall into one of the five categories. Federal, state, and local governments worked together to create these. Both will get you out of debt. Still, they will impact your credit report, finances, and history differently. You must approach each carefully before deciding which one works the best for you.
Making Payments on the Monthly Balance
The first of the five debt relief options is the simplest. It involves paying off monthly debts in a systematic manner. Your goal is to pay the required minimum. To succeed, you must aim for a little more. Failing to do so will result in the process taking you a long time to finish.
This option avoids late payment penalties and exorbitant interest rates. If you keep up the excellent work of making payments on time, your credit rating won’t suffer. You will pay off your obligations slowly unless you pay more than the minimum.
Review your budget and debt payment fund to see if you can meet your essential payment obligations. Then pay off high-interest bills with more than the minimum. If the money isn’t enough, look at your spending to see where you could save more. If that doesn’t work, try option two.
Debt Consolidation
The next increasingly popular option is debt settlement. This means hiring a debt settlement or debt reduction firm. The idea is that they will bargain with the creditor on your behalf to reduce your debt. As a rule, it’s a percentage of your initial If you pay off that debt responsibly, the court will forgive the rest of the debt.
The process starts with a financial assessment. After the negotiator determines your affordability, you must deposit funds at an insured financial institution. You will stop paying the creditor. When the creditor discovers that there’s a halt in your expected payments and sues you, the negotiator may offer a debt settlement plan.
Expect a significant impact on your credit report if you enter into a debt settlement agreement. It will pick up quickly once you have paid your bills.
Hiring the best negotiator as your advocate is crucial. While you can do it yourself, a debt relief professional’s expertise and negotiation skills will help you achieve more. Additionally, when you choose a long-standing company, you may benefit from their relationships with creditors and collection agencies. It will help you get a reasonable debt settlement.
To defraud creditors, a professional debt relief firm will not defend debtors who cannot pay the total amount due. You must be genuinely unable to make the minimum payment if you want to find a reputable debt settlement company.
Loans for Debt Consolidation
Debt consolidation is another option for debt relief. This entails consolidating all of your loans into a single loan for which you only pay interest on one. The goal here is to pay off the high-interest bills while just making one payment every month. The home equity loan is the most common type of debt consolidation loan. This means you’ll be selling your house.
The advantage of this debt relief option is that it simplifies debt management because you only need to pay attention to one payment. You should only choose this option if the monthly costs are less than the sum of the first debt relief option outlined before. Otherwise, you’ll be deluding yourself with this alternative. Another factor to consider is your credit score. This will hurt your credit file as well. It will, however, quickly pick up when you have cleared your bills and adequately compensated for them promptly.
It is also critical to keep yourself in check because, once again, your home is in jeopardy if you are unable to pay your debt. Stick to your budget and the payment terms of the new loan you’ll be taking out.
Debt Administration
Debt management, often known as credit counseling, is the fourth debt relief method. This entails registering in a service that offers debt counseling. It works on the same principle as a debt settlement, except that a debt manager manages the money. They will combine your debt and pay off your creditors for your sake, using funds from the account that you will be supporting. They will also assist you in negotiating with your creditors to reduce your interest rate, monthly payments, and outstanding sum. This will also impact your credit record, so don’t be surprised if your score drops.
The difference between them and a debt settlement firm is that they will also supply you with counseling services. They will assist in removing the source of the problem — your poor spending habits.
Bankruptcy
Bankruptcy is the last resort for debtors, creditors, and financial professionals. This is when you are declared bankrupt and unable to pay your debts. There is a bankruptcy court-involved, and your creditors may steal your assets. Even so, there is no guarantee that you will be able to repay your creditors fully.
This decision will impact your credit report, score, and history. If you need financial help, your chances are slim.
It’s also not a guarantee that you won’t pay your debts. The bankruptcy court will decide if you qualify for Chapter 7 or Chapter 13. In Chapter 7, the court will pardon the entire debt, but in Chapter 13, you will have to repay a portion of your debts through a debt repayment plan..
When should you seek debt relief?
Consider bankruptcy, debt management, or debt settlement if any of the following are true:
- Even if you decrease your spending drastically, you have little chance of settling an outstanding debt (credit cards, medical bills, personal loans) within five years.
- Your entire outstanding unsecured debt is equal to half or more of your taxable pay.
On the other hand, consider a do-it-yourself plan if you believe you can repay your unsecured obligations in five years or less. This may entail a mixture of debt consolidation, creditor appeals, and stricter budgeting.
What you should not do
A health crisis, unemployment, or a natural disaster can cause crushing debt to strike with devastating speed. Or maybe it happened gradually, and now creditors and collection agencies are pressuring you to pay, and you simply can’t.
Here are some things not to do if you’re feeling overwhelmed by debt:
- Paying a secured loan (such as a car payment) late to pay an unsecured debt is not a good idea (like a hospital bill or credit card). You may lose the collateral used to secure the debt (your car).
Borrowing against your home’s equity is not a good idea. You are placing your house at risk of foreclosure, and you may be converting unsecured debt that bankruptcy could discharge into secured, non-dischargeable debt
- Don’t take money out of your retirement funds to pay off unsecured debt. This is committing financial suicide.
- Consider borrowing money from your employer’s retirement plan as well. If you lose your employment, the loans may become unintended withdrawals, resulting in a tax burden, which you do not want.
Don’t make judgments based on which collectors are putting the greatest pressure on you; doing so may lead to behaviors that aren’t in your best interests. Instead, spend time researching your options and selecting the best one for your scenario.
What you should know before applying for debt relief.
If you’re having trouble repaying your debts, a debt relief plan might appear to be your only option. Although it can assist in making repayment more reasonable, you should be aware of the potential disadvantages before embarking upon debt relief as a resolution.
Scams
Credit counseling, debt settlement, and debt forgiveness are risky options.
Avoid paying upfront, promising to settle your debts for a fraction of what you owe, refusing to send free information about its services, or promising to stop all debt collection calls. Lawsuits are red flags for a possible scam.
It’s vital to do your homework before working with any debt relief company. Check the legitimacy of any service with the state attorney general’s office and the BBB. Verify an organization’s accreditation with the National Foundation for Credit Counseling.
Interest Rates
Compare the new loan’s interest rate to your current accounts if you’re considering debt consolidation. Refinance your existing loan to save money.
Repaying loans reduces monthly payments. Lower monthly payments mean more interest paid over the loan’s life.
Compare rates and terms from several lenders before deciding. If you use a balance transfer card, make sure you qualify for the 0% APR.
When transferring balances, pay off the balance before the promotional period ends. Unpaid balances usually have a variable APR. Credit card APR ranges are specified in the cardholder agreement for comparison.
So, if the balance transfer card’s variable APR is higher than your current rate, figure out how much you’ll save.
Fees
No matter the debt relief service you choose, it’s essential to comprehend the fees involved. Debt settlement firms usually charge a percentage of the entire amount owed, ranging from 15% to 25%. For example, if you owe $10,000 and the corporation charges a 20% fee, the service charge would be $2,000.
Many credit counseling firms provide free services, but if you join a debt management plan, you may be charged a set-up cost as well as a monthly fee. On debt consolidation loans, some creditors may charge processing or additional costs.
Implications for taxation
If you or a third party speak with your lenders and decide to settle your debt much less than what you have due, the difference is likely to be deemed taxable income. You may also be obligated to pay on it once your debts have been satisfied. Make a budget for it while you weigh your options.
Duration of the program
Debt relief solutions necessitate regular, on-time monthly installments — typically for years — and many people fail to complete the programs. Make sure you can commit toward any debt relief program before you begin. Otherwise, you’ll still be in debt and may not be able to get the new beginning you’re hoping for.
How does debt consolidation affect your credit?
To consolidate your debt, you might seek a debt consolidation loan or balance transfer offer. You can also negotiate a lower payment or settle your debt for less than you owe.
Note that if you continue to your debt repayment plan, any bad influence on your credit will likely dissipate over time. Your credit ratings may increase if you lower your debt and pay on time.
The alternative to debt relief, bankruptcy, might be confusing. Even though bankruptcy is a legal option that may help you discharge some of your debts, its effects on your credit might endure up to ten years.
Speak with an Oregon Bankruptcy Lawyer Today!
Filing for bankruptcy is a legal reason for individuals to get out from under debt and regain financial freedom. A reliable bankruptcy attorney in Oregon can assist you in understanding how bankruptcy works and how to file a bankruptcy petition.
Whether you’re in Portland, Salem, or Medford, our Northwest Debt Relief Law Firm bankruptcy attorneys have experience dealing with bankruptcy files and can assist you. Call us at (503) 487-8973, (971) 233-4543, or (541) 262-6732 for a free consultation now!
.fusion-body .fusion-builder-column-1{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-1 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1024px) {.fusion-body .fusion-builder-column-1{width:100% !important;order : 0;}.fusion-builder-column-1 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:850px) {.fusion-body .fusion-builder-column-1{width:100% !important;order : 0;}.fusion-builder-column-1 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}.fusion-body .fusion-flex-container.fusion-builder-row-2{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}
The post What are my options for getting out of debt in Oregon? appeared first on Portland Bankruptcy Attorney | Northwest Debt Relief Law Firm.
Updated daily, this blog will keep you informed on the latest bankruptcy news! 
Learn more about how Bankruptcy works and what you need to know.