Houston TX – According to data from the National Bankruptcy Research Center, US bankruptcies have reached a 5 year high.
The last record was set in 2005. That record was set because bankruptcy laws were being tightened up and people wanted to file before the laws changed.
(The big banks had convinced congress to make it harder for debtors to get relief.)
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The number of bankruptcies filed in 2010 reached 1,530,078. That was an increase of 8.7% over 2009. Even though the economy is starting to show signs of a recovery, people still need relief from debt.
“The [2005] law was supposed to reduce filings, but we are very close to levels we were at then,” said Samuel J. Gerdano, Executive Director of the American Bankruptcy Institute. “The laws of economic gravity are more powerful than the laws passed by Congress.”
I can’t agree with him more. Here are a few tips if you are considering bankruptcy.
Tip #1: Sometimes not filing bankruptcy at all is preferred to a Chapter 13 Bankruptcy filing. Let me explain why.
A Chapter 13 is basically a repayment plan. Very few debts are wiped out. In addition, your whole financial life is placed in the hands of a bankruptcy trustee.
They oversee all your finances so you can attempt to repay everyone. Contrast this with a Chapter 7 Bankruptcy where you can erase debts you can’t afford.
Tip #2: When you interview bankruptcy lawyers, ask about their ratio between Chapter 7 filings and Chapter 13 filings. A good bankruptcy lawyer will be able to help you file Chapter 7 and avoid a Chapter 13 bankruptcy. Thinking about a short sale?
I can help you short sale your property and never pay the bank another penny. Send me an e-mail at soldbymichelle@gmail.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (832) 413-1914
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Houston loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.
Thanks for reading this, Michelle Gonzales.
Michelle is a Real Estate Agent at RE/MAX 360. Houston Short Sales Realtor:
Phone: (832) 413-1914. soldbymichelle@gmail.com.
“Educating the Homeowner, One by One!”
View My homes for sale at www.yourhoustonhomesource.com.
Michelle Gonzales specializes in loan modification assistance and short sales in Houston Texas. Houston Loan Modification Help, Houston Short Sales. Houston Short Sale Realtor , Short Sale Realtor. Houston TX Short Sales. Houston Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Michelle Gonzales’s personal views and do not reflect the views of RE/MAX 360.
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