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January 2018 Archives

How can a Chapter 13 help with second mortgages?

Many people in Louisville, Kentucky, usually in an effort to manage their finances, take out a second or even a third mortgage on their home. This works well so long as the family has a steady income and no other financial problems. However, in the midst of financial problems, a family can get behind in their second mortgage payments.

Chapter 13 bankruptcy offers advantages

In many cases, a Louisville family may file a Chapter 13 bankruptcy, which involves repaying creditors all or part of the family's debts over the course of 3 to 5 years, simply because they make too much income to qualify for a personal bankruptcy under Chapter 7. In other cases, people might sense a moral obligation to repay their debts as best as possible, even though they see the financial advantages to filing a Chapter 13.

Should I agree to reaffirm a debt?

In a Chapter 7 bankruptcy, it is fairly common for a family to own a house or a car or even some other item which is "secured," that is, the property serves as collateral in the even the family cannot pay the mortgage or the car loan. In other words, the debtor has the right to take the property; while the bankruptcy may delay this process, it does not prevent the bank from taking back the house or car.

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