Alternatives to Filing Bankruptcy

There is just no easy way to get out of debt, you have to face up to the consequences. A bankruptcy is not always the answer, as the effects are long lasting. There are four ways to handle debts that are out of control, listed in best to worst in regards to the effect it will have on your credit:

If your credit isnt in terrible shape, can you reduce your other expenses, even if it means making hard choices or just change your lifestyle to fit your ie? Some ways to do this:

1. Selling the second car
2. Pulling equity out of your home
3. Applying for a non secured signature loan
4. Obtaining a loan from a relative
5. Selling your home and paying off your debts with the proceeds and then renting
6. Cashing out your 401K/retirement benefits
7. Selling family heirlooms, jewelry, etc…

If your credit is already gone or one of the above isnt an option, go through Consumer Credit Counseling Services (CCCS). Check your yellow pages for the local number.

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Baseball hotshot, Lenny Dykstra, was arrested in California for reportedly selling $400,000 worth of belongings and trashing his million-dollar mansion after he declared bankruptcy in 2009, the Los Angeles Times reports. He reportedly sold many of the items for cash.

The house the baseball star purchased from hockey great Wayne Gretzky may come with some repair jobs, as the baseball star reportedly took truckloads of fixtures and other items from the house and ripped out a $50,000 stove from the property without consent of the bankruptcy trustee, according to Fox Business.

Our Chicago bankruptcy lawyers urge you to contact a lawyer immediately if you or someone you know is currently going through bankruptcy. While bankruptcies can be filed without a lawyer, as a federal court case it is much more complicated than many realize. A qualified attorney can help make sure you stay on the right side of the law. A lawyer will help you through all of the proper steps in helping you to organize your financial situation.

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Baseball hotshot, Lenny Dykstra, was arrested in California for reportedly selling $400,000 worth of belongings and trashing his million-dollar mansion after he declared bankruptcy in 2009, the Los Angeles Times reports. He reportedly sold many of the items for cash.

The house the baseball star purchased from hockey great Wayne Gretzky may come with some repair jobs, as the baseball star reportedly took truckloads of fixtures and other items from the house and ripped out a $50,000 stove from the property without consent of the bankruptcy trustee, according to Fox Business.

Our Chicago bankruptcy lawyers urge you to contact a lawyer immediately if you or someone you know is currently going through bankruptcy. While bankruptcies can be filed without a lawyer, as a federal court case it is much more complicated than many realize. A qualified attorney can help make sure you stay on the right side of the law. A lawyer will help you through all of the proper steps in helping you to organize your financial situation.

Full Post…

Contrary to popular belief, acquiring a mortgage after filing for bankruptcy is not impossible.  The Federal Housing Administration insures mortgages despite bankruptcy, with seasoning requirements.

Time Frame

• Per the FHA Guidelines, a debtor must wait at least two years after a Chapter 7 or 13 is discharged before you can qualify for a mortgage.
• FHA makes an exception to the two-year waiting period for Chapter 7 filings. If you had to file due to extenuating circumstances beyond your control, such as a medical condition or physical disability that kept you out of work, you may qualify after a 12-month waiting period post discharge. FHA requires you to document responsible financial management in the interim.
• You must obtain court permission to enter into the mortgage transaction after a Chapter 13, according to the FHA Handbook.

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