Five Reasons to go for Loan Modification Instead of Filing for Bankruptcy

Those people who are unable to pay back their debts and want to stay in their home they should go for loan modification. Loan modification is a simple way that gives you a chance for the debtors to pay back their debt. Actually loan modification can be very useful for debtors if the borrower is truly having a short-term hardship. In the loan modification your debt can be changed to a more affordable and reduce your monthly payment and interest rate. In simple words, the purpose for loan modification is to reduce debtor mortgage payments and make the payments affordable.  Here Brian Linnekens a bankruptcy lawyer shares five reasons why you need to go for loan modification instead of filing for bankruptcy.

 

Reduces interest rate

One of the biggest benefits for loan modification is – a creditor will agree to reduce the interest rate for debtor mortgage but if you have a modification with a step rate feature, the initial modified interest rate is temporary it means it is usually fixed for 5 years after completing 5 years your interest rate begins to adjust automatically. This process is called rate cap. One important thing to remember is if your loan modification is about five years then your monthly payment and interest may be changing soon. If you still have a concern about anything then you need to call your mortgage company.

Protect your home

Loan modification is the best way for people to use who are not able to pay back their debt and want to keep their homes. Actually, those people may be thinking of filing a bankruptcy they believe that they might not get to keep their homes, and the unfortunate truth is that the entire process will only allow them to stay a little bit longer. However loan modification is a permanent solution for this problem. It will make your current financial situation easier because with the loan modification you can keep your residence by designing a lower monthly payment.

Reduce Principle

Principle reduction is a big benefit of loan modification. According to this the creditor will reduce the amount of principal that the borrower owes, with no expectation of a repayment. It is a very effective way to reduce payments than lowering the interest rate on the mortgage, or extending the term.

Impact for the credit report and financial history

If you file bankruptcy you can get relief from all outstanding obligations but the mark of bankruptcy is going to exist for seven to ten years. It is very difficult to get new loans and apply for credit in future with a bankruptcy mark on your credit report. However, loan modification builds a foundation for the consumer to rebuild their financial picture once again.

 

Makes you Debt Free

Loan modification will help you become debt free from the mortgage or other loans you owe. And the best thing is that this process is not recorded as a foreclosure or bankruptcy and banks will not harass you for the difference between the selling price of your home to pay off the mortgage in part and the total amount of the debt in exchange of a clean slate.

Some important things to remember before filing bankruptcy

Filing Bankruptcy is not an easy process. However, bankruptcy is a necessary option for debtors who are not able to pay back their debt and want some time or a plan to pay back their debts. By filing bankruptcy, they can pay back their debt within three to five years. If your financial condition is very bad and you think bankruptcy is the best solution for your problems then Brian Linnekens shares some important things that are important to know before filing bankruptcy.

Show all your sources for income and all your Assets

On your bankruptcy form, you need to show all your sources for income and you need to declare all your assets because if you do not show all your income sources then you are may lose your authority to a discharge of your debt and criminal charges may also be filed and a fine may also be imposed on you. Apart from that, the court should have all the data about your assets, income, and expenses with it to ensure an amicable plan for you to pay off your debt in the coming years.

Avoid using your credit card continuously

Stop your credit card use because if you use your credit card it may create a few problems. The use of credit card will accumulate more debt on you, which will further create a doubt in the mind of the authorities processing your bankruptcy proceedings that you never ever intended to pay off your debts since you are accumulating more of it. Apart from that, steer clear of taking any cash advance on your credit card. While in the middle or even having decided to file for bankruptcy do not accumulate any additional debts on yourself.

Need to know different chapter of bankruptcy

Before filing bankruptcy, you need to know different chapters of bankruptcy. Bankruptcy has many chapters such as chapter 7, 11, 12, 13. All chapters have different conditions and benefits for the debtors. That is why before filing bankruptcy you need to talk to a bankruptcy lawyer because he can give you the best suggestion according your situation.

Prepare yourself before filing for bankruptcy

You may need to prepare yourself because filing bankruptcy involves a lot of paperwork. It is also important for you to know that bankruptcy filing is public, so everyone can look up your financial information. In others words you will lose some financial control and privacy during this process. That is why you need to prepare yourself before filing bankruptcy so that you can easily face the situation.

Speak to an Experienced Bankruptcy Lawyer

Filing bankruptcy is not an easy process that is why before filing bankruptcy you need to talk to a bankruptcy lawyer.  To determine if you are speaking to an experienced bankruptcy lawyer, you need to ask many questions about their profession like how many cases he/she has handled in the past, how many others areas of the law practice. It is very important because an experienced bankruptcy lawyer gives your better suggestions and with the help of a bankruptcy lawyer, you can easily know about the bankruptcy law and decide what you want.

Brian Linnekens gives an insight on Different Types of Bankruptcy

Bankruptcy is a legal process that reduces debt and gives you a chance to reorganize your debts. According to Brain Linnekens by filing bankruptcy, you can easily overcome your bad financial situation. You can pay back your debt within 7-10 years with repayment plans. Bankruptcy has several types of chapters but in most cases, people file chapter 7 & 13 because these chapters are effective and easy to file.

When Chapter 7 Bankruptcy can be an option explains Brian Linnekens

Chapter 7 is very helpful for debtors who are not able to pay back their debt. It is very useful in those cases where majority of the debt is unsecured because in chapter 7 bankruptcy some of your property is sold to recover the debt one has incurred from creditors and in return your unsecured debt will be written off. Remember everyone does not file chapter 7 bankruptcy. In cases where the disposable income is enough to file a chapter 13-repayment plan after subtracting certain allowed expenses and monthly payments for certain debts you would not be allowed to use chapter 7 bankruptcy.

Chapter 9 Bankruptcy as explained by Brian Linnekens

Chapter 9 bankruptcy is designed for “municipalities.” The main purpose of chapter 9 is to safeguard a municipality from its creditors while it negotiates its debts. According to chapter 9 bankruptcy a creditor cannot take over the assets of the municipality from the municipality. Only a municipality can file for relief under chapter 9.

Chapter 11 Bankruptcy

Chapter 11 bankruptcy is very complicated and it used for those peoples who are struggling with their business and want to reorganize their finances. It is generally used only by those whose debts exceed chapter 13. In this process debtors continuously work and maintain owner ship of all assets and try to fulfill to pay off creditors. Chapter 11 is more expensive. Before filing chapter 11 you will need to talk to a bankruptcy lawyer like Brian Linnekens who will be able advice you professionally based on his experience and years of learning in the realm of Bankruptcy.

Chapter 12 Bankruptcy

Very few people use chapter 12 bankruptcies. It is specifically for farm owners. According this chapter the debtor maintains ownership of his assets and works out a repayment plan with the creditors. Similar to chapter 13, filing under chapter 12 bankruptcy you can pay back your debt within three to five years.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is one of the most beneficial options for those people who are struggling with their debts. It is best for those debtors who are behind on secured debts such as home mortgages and car loans. Chapter 13 bankruptcy gives you a chance to keep all your assets and you can stop foreclosure with the repayment plan agreed upon in the Bankruptcy terms and conditions. According to the repayment plan, you can pay back your debt within three to five years. The time of three to five years can be increased by the bankruptcy process if you are not able to pay off your debt within three to five years. Since paying off the debt within a particular time period will depend on your present income. Chapter 13 will help you to reorganize and reduce your debt. It will also gives you a chance to create new plans to pay off your debts and gives you more time to fulfill your financial obligations.

Bankruptcy has provided us many options. If you are thinking of filing bankruptcy then you need to understand the various bankruptcy options and know which one is suitable for you. Before filing bankruptcy, you can talk to a bankruptcy lawyer since bankruptcy law is very complicated and with the help of an attorney you can easily know the difference between the various bankruptcy chapters. Filing for bankruptcy should be the last option. Before filing for bankruptcy you should check for other options like loan modification or loan settlement whichever is possible for you.

 

For more details about Brian Linnekens feel free to visit: http://www.brianlinnekens.com/2017/03/25/brian-linnekens-gives-an-insight-on-different-types-of-bankruptcy/

Brian Linnekens provides tips to improve credit score after bankruptcy

Individuals who file for bankruptcy in the court will definitely have to see a negative impact on their credit scores. If you recently filed for bankruptcy chapter7 and chapter 13 protections, it is very important for you to manage and improve your credit scores afterwards. Healing your credit scores will help you get your life back on track. According to Brian Linnekens there are several things you can do to start re-establishing your credit score after bankruptcy. Follow these expert tips and improve your credit scores in a very small period of time.

Brian Linnekens Advises to clear your credit reports of errors

One of the most important steps of managing your credit is to clear your credit reports of errors from TransUnion, Equifax, and Experian. Under the Fair Credit Reporting Act, It is your right to dispute inaccuracies. Ensure that your credit reports have correctly labeled your pre-bankruptcy debt as “included in BK”. If a debt you included in the bankruptcy is not being reported correctly, contact the credit bureau reporting the information to start a dispute and have the information corrected.

Brian Linnekens asks you to Track your finances and credit reports in a regular manner

After a bankruptcy, you must be extra vigilant about your finance and credit reports. Keep a regular eye on your finance and credit conservatively. Be cautious with spending. This is a high time when you essentially require making a budget for your expenditures. A definite budget or effective spending plan will help you to manage your cash flow. Have a budget with a line for saving, so you can deal with future emergencies and unexpected events easily. Stop racking up unnecessary debt. Keep your employment stable.

Brian Linnekens advises you to pay your current bills in a timely manner

After filing for bankruptcy in court you are required to make timely payment of your current bills and rents. Just for the reason that missed payment can hurt your credit score. Bankrupt’s payments are being tracked by the credit bureau Experian, so it is very important for a bankrupt to pay his bills in a timely manner. Repaying existing bills as agreed in court will be one of the single, most powerful things that a bankrupt can do to restore his finances and credits. It will positively affect his credit score and will help him to release his case shortly from court.

Brian Linnekens advises to apply for a new secured credit card

Give up on your unsecured credit cards and apply for a secured credit card. Secured cards are useful tools for rebuilding credit. Secured cards need a cash deposit and offer lower credit limit than unsecured cards. Take a close look at the interest rate and fees before committing to a secured card. Ensure you are keeping your spending in control and paying in full and on time each month. Doing this will help you get most benefit for your score.

Article Source: http://www.brianlinnekens.net/brian-linnekens-provides-tips-to-improve-credit-score-after-bankruptcy/

Check the kind of financial advisor you are looking for

Outside financial assistance is very important, particularly, for recognized businesses. On the other hand, financial agents possess a mixed popularity within the market for their professional services offered feels Brian Linnekens. There is pool of financial advisers in the marketplace however many of these usually are known for their informative advice.

Clear you doubts of employing a financial adviser

The first and most essential question to understand will probably be your need. You need to realize whether a person require guidance or perhaps data for your funds. For many who are merely looking for some information similar to what should be done with pension you can visit numerous web sites. Websites like these consist of information about home mortgages as well the very best personal savings and also credit card deals.

Nevertheless, when you are short of time as well as don’t seem to be self-confident concerning your finances, looking for financial adviser’s assistance is vital. A good adviser can recommend numerous proper products. Typically, consultants expertise covers diverse areas- some are financial advisers while some are generally broker agents, tax advisers etc. Make certain you hire an impartial adviser who can suggest you appropriate products from the market. A few of the pointers to employ financial advisers according to Brian Linnekens are:

Employ professional financial adviser from the market-

Make sure to check the certificate of the financial adviser to prevent any kind of discontentment. A person can’t hire any person from your market to advice you on your finances. Experts are reliable and their professionalism will be the real power. Usually, financial advisers will need to have accreditation from Certified Financial Planner as well as Personal Financial Specialist. Make certain about his status industry and his previous clients.

Inquire in addition to discuss around with friends and colleagues-

To hire a financial adviser, you may check around from friends as well as co-workers. You can check registries with professional associations such as Associations of Personal Financial Advisers to discover good financial adviser.

Recognize your requirements-

As stated before, you must know the reasons you wish to employ a financial agent. In case you are clear with regards to your wishes then picking out the correct individual to advice should be quiet easy. Given that financial planners expertise is within different places make sure you retain the person who fits your preferences by meeting with many different financial advisors.

Know how the adviser gets paid –

A few financial planners are generally paid a fixed amount in their tenure so they don’t charge commissions for the services. Alternatively, commission based planners don’t charge their clients for frequent visits rather they have some portion in the services and products. Fee-only advisors are uncommon so the majority of financial advisers tend to be commission based.

Know the alphabet soup –

A Certified Financial Planner (CFP) is a individual who would be able to counsel you on the whole financial picture. However, the CFA could be the person with expertise in investing in addition to CPA is a person tackling with tax issues. You should find the one who fits your expectations.

Inside existing market scenario, choosing the right tax assistance is actually wearisome. Customers should be extra careful about hiring the best one. If you hire the wrong person, it can be unsatisfactory for you later on. Finances need to be managed by an individual who is experienced in his area and is trustworthy. Research as well as planning is necessary and do as much as research it is possible to get the best one.

Article Source: http://www.brianlinnekens.com/2013/12/28/check-the-kind-of-financial-advisor-you-are-looking-for/

Economical tips from Brian Linnekens to help you pile up wealth and also free from debt

Successful financial preparation just isn’t investments, this is the answer to a tension free as well as flourishing existence. Acquiring beneficial financial ideas as well as investing selections link one to your primary goal which help you gather wealth and remain out of debt during your life. Brian Linnekens has put in the past 10 years advising some of the most prosperous as well as well-to-do families in the states. Based on his understanding in addition to experience during the last Decade, Mr. Linnekens gives you his expert suggest that was successful for his consumers. His advice can help you deal with and grow your hard earned dollars. Learn how to build, foster in addition to sustain cash.

Brian Linnekens cautions not be mastered by your desires

The very first and most essential money advice Brian Linnekens provides to accumulate wealth and remain debt free is actually “not to be mastered by your wants”. To reach your goals and live a booming lifestyle first, it is advisable to find out the art of delaying gratification. Stalling your own gratification will encourage you to keep your finances in order. Don’t be in rush to receive all of your current desires. If you’ve got your sight on a thing that you can’t manage to own, delay until you could have enough income to purchase it. Don’t effortlessly purchase an item on your credit card the instant you desire it. Delay the impulse to obtain for the time being and also wait until you’ve truly secured the cash to pay for that merchandise.

Make a good use of your credit cards advices Brian Linnekens

If you would like experience the convenience factor and also advantages of your credit cards, do not come up with a habit of putting all of your purchase on credit cards. Make use of credit cards sensibly as well as sparingly. Make sure all your expenses are not on your own credit card. Limit the use of your own credit card and a have a plan to pay for the balance As quick as possible. Be certain that you’re not really shelling out what you can’t pay off at the end of the month and then try to pay your balance completely once the monthly bill comes. Don’t carry more credit cards that you simply can’t keep an eye on.

Make a plan for your current bills

Budgets play a critical part to help remaining free from debt together with keeping most of your hard-earned cash. Successful cost management makes certain that your current expenses are not going above your income. Track your income movement. Monitor your own obligations for a month utilizing your smart phone, app or perhaps paper and pen and be certain to record each and every purchase, irrespective of how tiny. When you’re familiar with your expenses and also your cash movement, you may realize keeping track of money flow provides a major impact on finances. An efficient cost management will aid you to enjoy the benefit selection on how to allocate funds.

Practice Target personal savings with regard to comfortable retirement and emergencies

Practice target savings are very critical for your current retirement together with emergencies. Your own financial savings could save you within your difficult financial circumstances. Set a maximum target for the savings that you may preserve inside a certain period of time. In case you keep preserving over a long period of time your own cost savings can grow routinely and stay there for you when you need it. In case you have cost savings you don’t need to face poor financial conditions and you’ll generally remain out of debt. Saving a lot of money over time maintain your recurring month to month expenditures as small as possible. Don’t spend your cash, create a prudent utilization of your finances simply by doing budgeting.

Build your financial plan with excellent investments

Investing your finances is definitely critical part of an excellent financial plan that could be employed in times of emergencies and retirement. It will help to make sure that your complete hard – attained bucks don’t go away. The first step in developing your financial plan is to meet a financial advisor who provides you with impartial suggestions about expenditure. You will have to shield your current riches simply by employing a excellent financial advisor such as Brian Linnekens that can guide you choosing the right types of investment funds which fit your needs, personality, in addition to goals.

Is Bankruptcy a Good Idea for You?

6Bankruptcy is a process in which consumers and businesses can eliminate or repay some or all of their debts under the protection of the federal bankruptcy court. For the most part, bankruptcies can be divided into two types – liquidation and reorganization. According to Brian Linnekens there are several types of reorganization and liquidation bankruptcies but Chapter 7 bankruptcy comes under the liquidation and 13 is most commonly used by reorganization.

Figure out what bankruptcy options you have

These are types of bankruptcy most commonly used by individual filers in the United States:


Chapter 7 bankruptcy: According to chapter seven (7) Bankruptcies preceding that can wipe out many of your debts in a three to six month period. However, you may lose some of your personal property.


Chapter 13 bankruptcies: According to chapter thirteen (13) Bankruptcies preceding you will be required to make a repayment plan based on your income, showing how you will pay off your debts in the next three to five years.


Consider your alternatives


Bankruptcy is not for everyone. Indeed, many unnecessary bankruptcies are filed each year. You should sit down with your financial documents and consider your situation carefully before making a decision. You may find that you do not need to file bankruptcy because you can fix your financial woes with a few simple changes.


Ensure that you are eligible to file for the type of bankruptcy you want to file


There are certain requirements that you must meet in order to file for certain types of bankruptcies. For example, you may not be able to file for Chapter 7 bankruptcy if your income is high enough to pay off your debts through Chapter 13. Also, if your income is too low, or your debts too high, you may not be able to file for Chapter 13 bankruptcy because you cannot show that you are able to meet your repayment plan.


Find out what debts will and won’t be forgiven There are certain types of debts, such as child support, money and tax debts, that cannot be wiped out through a bankruptcy proceeding, no matter whether you file Chapter 7 or Chapter 13. Be sure that the debts that you have are types that can be addressed in bankruptcy before you file. It won’t do you any good to file only to find out that bankruptcy will afford you no protection.


Find out if your credit card debts will be wiped out


Bankruptcy has become an effective tool for wiping out credit card debt. You should figure out if your credit card debt will be wiped out by a bankruptcy proceeding before you file. If you lied on a credit card application or spent well beyond your means, bankruptcy may not be able to forgive your credit card debt.


Ensure that your pension plans are safe


Most pension plans and life insurance policies are protected by state laws in a bankruptcy scheduled. Before filing for bankruptcy, it would still be a good idea to find out whether your pension plan (401(k), IRA) and/or life insurance policies will continue to be protected.