REDEMPTION; HOW WORKERS COMP RESETS YOUR LIFE

When you file a bankruptcy case, you are required to value all of your vehicles. When your vehicle is worth less that what you owe on it, it is possible to do a redemption. Redeeming the loan is when you get the court to assist you in forcing the lender to accept the current fair market value of the vehicle as payment in full on the loan you owe. For example, if you have a vehicle worth $6,000 and you owe $10,000 on your loan, a redemption would allow you to pay $6,000 up front to the lender, and the court would discharge the remaining $4,000 you owe in the bankruptcy.

The main pro of redemption is that you can save a LOT of money because you are only paying the amount that your vehicle is actually worth.

The down side is that most clients do not usually have a large amount of cash to pay up front, and redemptions do not permit payment plans. Most clients get a redemption loan - this is a hard money loan from a new lender, often at a very high interest rate. It is important to make sure that the redemption loan is affordable, because that new loan will not be included in the
bankruptcy. A good bankruptcy attorney can help you negotiate a redemption loan that can save you thousands of dollars and decrease your monthly vehicle payment - plus, you get to keep the vehicle!

You may have a relative who will loan you the money or even buy the vehicle and sell it back to you.

Redemptions require you and your attorney to attend a special court appearance where you must prove the fair market value of the vehicle you are redeeming. Often your lender will contest the value we list, so having attorney representation is very important.

To learn more about redemption or to set up a free consultation with our bay area bankruptcy attorney, please call.

Read more: http://www.articlesbase.com/bankruptcy-articles/redemption-how-bankruptcy-can-dramatically-reduce-your-monthly-vehicle-payment-2663844.html#ixzz0rW9xjib0
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CAN I RETRAIN WITH WORKERS COMPENSATION

The more equity in your home the more beneficial it is to the lender to foreclose. While foreclosure makes the lender whole, it may be a financial disaster for you. Your home is gone, your equity is gone, your credit is negatively affected, and you incur the costs of moving. You should always try to avoid foreclosure even if it means selling your house. There are ways to avoid foreclosure like contacting your lender as soon as you realize you have a problem. Lenders may be able to assist you in lowering your payments. Be sure to prioritize your spending and you may be able to reduce your monthly expenditures – by putting a membership on hold. If you are behind on your home mortgage filing for bankruptcy may allow you to keep your home. Free Consultation Walking away from a home that is worth less than the mortgage debt is not simply a financial decision, it is a moral dilemma. University of Arizona associate professor of law Brent T. White argues in a paper entitled “Underwater and Not Walking Away: Shame, Fear and the Social Management of the Housing Crisis” that Americans who own homes that have depreciated far below the amount owed would be better off walking away and renting. In this paper recently featured by the Wall Street Journal Online, Mr. White says homeowners are kept in these “upside-down” homes by feelings of fear, shame, and guilt that are encouraged by politicians and bankers. Free Consultation No one wants to walk away from a family home, but one should consider the financial consequences of staying. You should compare rents in your area. If they are substantially lower, then renting may suit you better. however, the tax write off from a mortgage should figure in the calculation. Depending on your tax bracket, you house payment may be written off upt to 30%. If you have a first trust deed, in California they cannot get a deficiency. Further, there is pending legislation to extend this second mortgages on your home. Call the Jolley Smith Law Office if you want to discuss this issues. 559-320-7028

HOME PROGRAMS

Explore Loan Workout Solutions with Your Lender First and foremost, if you can keep your mortgage current, do so. But if you find you are unable to make your mortgage payments, you might qualify for a loan workout option. Check with your lender to see which option may be available. Some options may not apply to your loan if it is not insured by FHA. If your problem is temporary - call your lender to discuss these possibilities: • Reinstatement: Your lender is always willing to discuss accepting the total amount owed in a lump sum by a specific date. Forbearance may accompany this option. • Forbearance: Your lender may allow you to reduce or suspend payments for a short period of time and then agree to another option to bring your loan current. A forbearance option is often combined with a reinstatement when you know you will have enough money to bring the account current at a specific time. The money might come from a hiring bonus, investment, insurance settlement, or tax refund. • Repayment plan: You may be able to get an agreement to resume making your regular monthly payments, plus a portion of the past due payments each month until you are caught up. If it appears that your situation is long-term or will permanently affect your ability to bring your account current - call your lender to discuss options: • Mortgage modification: If you can make payments on your loan, but don't have enough money to bring your account current or you can't afford your current payment, your lender may be able to change the terms of your original loan to make the payments more affordable. Your loan could be permanently changed in one or more of the following ways: oAdding the missed payments to the existing loan balance. o Changing the interest rate, including making an adjustable rate into a fixed rate. o Extending the number of years you have to repay. • Partial Claim: If your mortgage is insured, your lender might help you get a one-time interest-free loan from your mortgage guarantor to bring your account current. You may be allowed to wait several years before repaying this loan. You qualify for an FHA partial claim if: o Your loan is between 4 and 12 months delinquent. o You are able to begin making full mortgage payments again. When your lender files a partial claim, HUD will pay your lender the amount necessary to bring your mortgage current. You must sign a promissory note, and a lien will be placed on your property until the promissory note is paid in full. The promissory note is interest-free and is due when you pay off the first mortgage or when you sell the property.

WHAT WORKERS COMPENSATION CAN DO FOR YOU

What Bankruptcy Can and Cannot Do Bankruptcy is a powerful tool for debtors, but some kinds of debts can't be wiped out in bankruptcy. Bankruptcy is good at wiping out credit card debt, but you may have trouble eliminating some other kinds of debts, including child support, alimony, most tax debts, student loans, and secured debts. What Bankruptcy Can Do If you are facing serious debt problems, bankruptcy may offer a powerful remedy. Here are some of the things filing for bankruptcy can do: Wipe out credit card debt and other unsecured debts. Why shouldn't I reaffirm my credit card debts in bankruptcy? Bankruptcy is very good at wiping out credit card debt. Unless you have a special "secured" credit card, your credit card balance is an unsecured debt -- that is, the creditor does not have a lien on any of your property and cannot repossess any items if you fail to pay the debt. This is precisely the kind of debt that bankruptcy is designed to eliminate. Besides credit card debt, you may have other unsecured debts, and bankruptcy can wipe these out as well. If you file for Chapter 13 rather than Chapter 7, you may have to pay back some portion of your unsecured debts. However, any unsecured debts that remain once your repayment plan is complete will be discharged. Stop creditor harassment and collection activities. Bankruptcy can stop creditor harassment, but if the "harassment"' is simply phone calls and letters, there are simpler ways to stop it; see What to Do If a Bill Collector Crosses the Line. If the harassment is more serious -- for instance, if the creditor is about to repossess your car or foreclose your mortgage -- bankruptcy can help; see How Bankruptcy Stops Your Creditors: The Automatic Stay. Eliminate certain kinds of liens. A lien is a creditor's right to take some or all of your property and will survive bankruptcy unless you invoke certain procedures during your bankruptcy case.

YOU CAN SAVE JOB

You may want to keep your car in bankruptcy. Most attorneys will advise against it because after discharge, you make get in to financial trouble and will not have any protection against repossession and collection efforts of your lender. In some cases, you may have to sign a reaffirmation agreement with the lender. Statement of Intention In your papers, you have to state your intention as to whether you want to surrender your car, reaffirm the debt or redeem the vehicle. By doing nothing and not stating your intention, or simply “riding through” – and continuing to pay the car after bankruptcy generally is not available as an option. You have to act on your statement of intention promptly – within 45 days. The reaffirmation agreement You must file a reaffirmation agreement and contract to pay the loan after the discharge. If you don’t pay the debt in the future, you’re still liable personally for it. You have to be up to date with payments to reaffirm. Otherwise, you’ll lose the car and still be liable on the debt. You need to be able to afford the loan. Maybe you can maybe you can’t. Your lawyer must also attest to your ability to pay. Some lawyers just won’t do this. Some lawyers are successful in negotiating a better deal for you as a condition to entering into a reaffirmation agreement. You may have to pay an extra fee for this. Discuss it with your attorney The reaffirmation hearing If your lawyer doesn’t sign off on a reaffirmation agreement, you will be called to court on a Reaffirmation Hearing. Don’t be afraid of this. The judge will ask you if you can afford to pay for the car. You’ll explain whether you need the car, whether it’s the best deal you can get and how you can afford it. If all is in order, you can reaffirm before your discharge. When to file a reaffirmation agreement A reaffirmation agreement must be signed before discharge. So doesn’t dilly dally on this point? And if you don’t sign a reaffirmation agreement, the car lender will get an order saying the automatic stay and then try to repossess your car. Laws vary from state to state but in Illinois, your bankruptcy is ground for repossession absent reaf