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.

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/

Five Advantages of choosing an experienced Bankruptcy Attorney

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Bankruptcy is a legitimate process which enables a debtor to file for court protection from creditors looking for reimbursement of credits. For people who are fighting with an overwhelming amount of debt issues, bankruptcy means a new start in terms of finances in future. When you are fighting financial uncertainties and are unable to pay back debts filing for bankruptcy is the most financially responsible move you can make. If you are thinking about bankruptcy then your first step needs to be choosing an experienced bankruptcy attorney. Brian Linnekens a bankruptcy lawyer has been sharing a few advantages to hiring a knowledgeable bankruptcy lawyer.

Bankruptcy Attorney gives you Lawful Advice and Valuable Suggestions-

Bankruptcy is an extremely complex and daunting process. The bankruptcy lawyer gives you all answers to any queries about petitioning for bankruptcy. If you are confused about bankruptcy, they will give you particularly lawful advice, valuable suggestions and also a lawyer will help you make critical decisions for example what kind of bankruptcy you should file.

Helps for Representation-

A Bankruptcy Attorney helps you better communicate between you and the creditors. It is common to feel uncomfortable and dubious about settling on decisions yourself. A bankruptcy lawyer will manage communications and will represent you in court proceedings and meetings. Else you will need to negotiate your settlement and chase complicated court procedures alone.

No More Harassment-

When you are hiring a bankruptcy lawyer, they will handle all the issues for you and you will be free of the hassles. Do you have debt collector calling your home or business constantly? It is harassment. In fact, creditors can keep on calling you once you file bankruptcy, however if you work with a bankruptcy lawyer you can inform the creditors to contact your lawyer straight.

Bankruptcy Lawyers know the system inside out-

For the most part lawyers have built relationships with judges, clerks, different lawyers and different parties required in their clients’ cases. In this manner, they usually have a deep knowledge of the court framework controlling their clients’ case. In spite of the fact that this does not give bankruptcy lawyers any legitimate advantage, their specialized connections can help by keeping your case running smoothly within the system. Get the best results for your case; you should cooperate with your attorney. Always give all requested documents, and don’t skip hearings. A good lawyer will definitely help you for your case.

No more Fear and Tension for Filing Bankruptcy-

Filling a bankruptcy can be complicated. A bankruptcy lawyer can help with the fear and uncertainty. If you don’t know how to file a bankruptcy, Attorneys will help you do the filing. You can know from day 1 what will happen with your finances. Yes, most bankruptcy hearings are short and to the point, yet there is a lot of detail that goes ahead outside the court and in paperwork. This is the main benefit to hire professional bankruptcy lawyer. You can be assured of no missteps. Only one thing you need hire a professional lawyer to help.

A few things you need to fix before filing bankruptcy according to Brain Linnekens

filing-bankruptcy

Bankruptcy is like a pressing a financial restart button while you are overwhelmed with debts. Filing for a bankruptcy is a fresh financial start that helps fillers to pay their liabilities. Before you decide that you are ready to fill bankruptcy in the court, remember you have to fix so many things which are important. Before you commit yourself to bankruptcy consider the following important tips from Brian Linnekens the bankruptcy guide. Following these tips will make sure that you are prepared for filing bankruptcy.

Get an idea about bankruptcy cost and fee

The first thing a bankrupt should do once he decides (or is still deciding whether to file or not) is getting an idea about bankruptcy fees and overall costs. No doubt, it costs to file bankruptcy; you need to submit bankruptcy forms and fees in the court on the day of your bankruptcy. You will also have to pay the bankruptcy lawyer who will handle your bankruptcy case in the court. So it is very important to find out in advance that what would be your overall bankruptcy cost before filing. A bankruptcy fee depends upon where you live in the USA. Instead of going alone find a lawyer that would assist you with the right bankruptcy cost. Well, it is possible to file for bankruptcy without a lawyer, but it is difficult, risky and an overwhelming task. As you are a bankrupt it might be difficult for you to arrange money for bankruptcy and lawyer’s fee but you could ask your family members and friends to help.

Change Your Bank Account Before filing a bankruptcy

If you have debts with your bank then your account is likely to be closed down when you go bankrupt. Brain Linnekens recommends bankrupts to open a new bank account before committing themselves bankrupt in the court. Banks with a good reputation generally have a clause in their terms and conditions that they will not open your a new account in their banks if you go bankrupt. So it is very important to open a new bank account two or three months prior to filing for bankruptcy.

Complete your forms

Before filing for a bankruptcy in the court make sure that you have completed two bankruptcy forms. One form is the Statement of Affairs (6.28) and the other is the Debtor’s Bankruptcy Petition (6.27). And if you are qualified for the court fee being waived then you will also need to complete the application for a fee remission form (EX160). Always carry 4 copies of the Statement of Affairs form and Debtor’s Bankruptcy Petition form with you while going to court for filing. Your bankruptcy cannot be granted without it. Make a file and keep more than four photocopies of each bankruptcy paper with you.

Book your appointment and attend your hearing

Not all courts deal with bankruptcy so you need to find out the details of the courts of your locality that deal with bankruptcy. Call your court to find out if the court you are going to handles bankruptcy related cases. Fix an appointment with a bankruptcy court which is closest to you. You should be responsible enough to be on time for your hearing.

Important Bankruptcy Questions Answered by Brian Linnekens

Anyone filing for bankruptcy undoubtedly has plenty of questions like what is bankruptcy? How does it work? What can bankruptcy do to anyone’ credit? Who should file for bankruptcy? What happens to debt and property after filing for bankruptcy? We have compiled a list of most frequently asked questions about bankruptcy. Get answers of these most common questions about bankruptcy from one of the popular bankruptcy attorneys of California, Mr. Brian Linnekens.

What is Bankruptcy?

Brian LinnekensThis is the most common question frequently asked to Brian Linnekens in his 10 years of bankruptcy law career. Brian Linnekens defined bankruptcy as a proceeding in which an individual legally declares that he is not able to pay all of the money that he owes. Bankruptcy grants that individual a fresh financial start while providing him an opportunity to potentially repay creditors in an orderly fashion.

What are the advantages of filing for bankruptcy in a court?

Bankruptcy makes is possible for debt collectors to stop foreclosure on bankrupt’s (a person who is declared insolvent) home and property. It provides an opportunity to debt collectors to catch up on payments that have been missed by an individual or bankrupt. Filing for bankruptcy helps a bankrupt prevent his home vehicle or other property from being repossessed. In addition, bankruptcy can prevent a bankrupt from wage garnishment and harassment by debt collectors. It can also provide a bankrupt a discharge of some of his debts.

What is the difference between bankruptcy chapter 7 and Chapter 13?

In bankruptcy Chapter 7, the debtor nonexempt property (if any exists) is liquidated to pay as much as possible to pay the debtor’s debt. On the other hand in Chapter 13 a proportion of the bankrupt’s future income is used to pay as much of the debtor’s debts as is possible under the bankrupt’s  financial circumstances.  This is a basic difference between Bankruptcy Chapter 7 and a Chapter 13. In the case of bankruptcy chapter 7 individual loses his nonexempt assets and receives a discharge from his debts. While in chapter 13, the individual retains his nonexempt possessions, but must pay back as much as feasible for the individual to pay over 3-5 years. Chapter 7 cases are less expensive and take less time than chapter 13. However, Chapter 13 allows an individual who is above the median income or who has a lot of nonexempt assets to keep their assets and receive the protection of bankruptcy.

What is an Automatic Stay?

An automatic stay is a restraint provided by a court after filing for a bankruptcy chapter 7 or chapter 13 to a bankrupt. An automatic stay prevents a bankrupt from his debt collectors to take any subsequent action to collect debts. The automatic stay is filed immediately after the bankruptcy petition is filed.

Will My Employer Know I Filed for Bankruptcy?

Bankruptcy petitions are public records. Normally; however, your employer will not know you have filed an appeal for bankruptcy unless you owe him money and your employer is your creditor.

What filing for bankruptcy won’t do for a bankrupt?

This is the most frequently asked and most important question that every bankrupt should keep in his mind before filing for a bankruptcy in a court. Remember, bankruptcy will not cure all of your financial problems. It should be understood that bankruptcy will not eliminate your secured debts such as mortgages and car loans. Bankruptcy also will not discharge your special treatment debts such as certain student loans, alimony, child support, certain taxes and criminal fines.

Strategies from Brian Linnekens to Determine a Professional Bankruptcy Lawyer

Absolutely nothing may be more complex along with difficult as compared with filing for a bankruptcy in the court. Filing for an individual bankruptcy without having right knowledge of courtroom principles and also personal bankruptcy legal guidelines contains a minimal recovery rate. To have an simple and easy , thriving individual bankruptcy case, you’re not allowed to make bankruptcy errors which can enhance the likelihood of getting the case refused via the courtroom. The crucial reason behind a good number of declined bankruptcy situations is getting a drastically wrong lawyer for the position. Employing a incorrect law firm may make blunders that may place you right into a substantial damage. For numerous attorneys, personal bankruptcy filings have grown to be a volume business. Debtors are receiving poor legal solutions through lawyers that put them into loss. Due to this, you’ll have to do some investigation before hiring a personal bankruptcy attorney. Here are a couple points according to Brian Linnekens that you need to look in a personal bankruptcy legal counsel before employing her or him whilst submitting a bankruptcy.

Brian Linnekens

Decide How Much You Can Actually Spend to Your Bankruptcy attorney

Bankruptcy attorney’s expenses may vary by region. In America intended for Chapter 7 bankruptcy, costs ranges from about $1,000 to $2,500. In the case of personal bankruptcy you will get what you spend on. Determine your budget, but don’t forget the fact that legal representatives who promise their expenses on their site or charge under the prevalent market fees work on quantities rather than on top quality. By no means acquire this type legal professionals. They can take as many cases as is possible at the cheapest prices possible, with simply one objective to generate income. Don’t be surprised to invest a minimum of $1500.00 on the bankruptcy case. Although, pricing of bankruptcy is dependent upon the number of collectors involved, judgment liens, and the sophistication of the matter. Try to not get a inexpensive attorney at law. Devote on some excellent legitimate companies to make certain that your assets are protected, and creditors are no longer knocking on your home.

Have a list of Finest Bankruptcy Attorneys within Your Area

Create a list of potential bankruptcy attorneys of your spot and continue to narrow down your list by doing some investigation on yelp or another websites which can help you find a good attorney exactly like you execute when you seek out the most effective hotels within the area. Think about looking at their scores and also testimonials on yelp as well as other sites. Be sure the attorneys on your list really practice bankruptcy law. Whenever employing an attorney, do not select one without having examining him or her on the web.

Make contact with their Earlier Clientele

If you have selected one don’t conclude a contract with him for filing your bankruptcy before talking to their previous buyers. Consult their prior buyers if the attorney communicated with them promptly or not and also did he or she answer all the questions on time or otherwise. It’ll guarantee that they basically serve in the most beneficial method.

Contemplate Checking out Their License in addition to Expertise

There are countless of internet sites accessible that would probably aid you to identify a possible law firm where they list their own practice and also specialization areas. Guarantee that the attorney is definitely licensed and has went through required methods in addition to certification of bankruptcy attorney. Decide on an attorney that’s acquainted with your local policies of your section and understands the actual trustees. It assists you go easy during the entire situation.

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.