Debt Relief and Foreclosure
Personal debt has become an increasingly large problem in recent years, in Kentucky and a number of other states. According to recent reports, the average American household carries $21,000 in non-mortgage debt.
Lexington Debt Relief and Foreclosure Attorneys
With debts of these dimensions becoming such burdens, many individuals and families have difficulty making repayments and are in need of experienced debt relief legal assistance.
If you’ve come to us because your family finances are so strapped that your home is in danger of foreclosure, we can seek a remedy for that dire situation too. For more than 30 years we’ve been helping deserving Kentucky families find a path to a brighter future.
If it has become an overwhelming burden on you to make scheduled payments on your existing debt, you may need to consider debt relief. Defined as either debt forgiveness or the slowing or cessation of debt growth, debt relief comes in several forms.
Chapter 7 and Chapter 13 bankruptcy are common forms of debt forgiveness. Both eliminate most forms of debt, allowing you to start over with a clean slate. Bankruptcy also takes a severe toll on your credit rating, however, so you should seek wise counsel from an experienced bankruptcy attorney who can help you weigh your options and choose the method of debt relief that is best for your situation.
Chapter 7 Bankruptcy
Also known as “liquidation,” Chapter 7 bankruptcy is what most people think of when they consider filing for bankruptcy. The court appoints a trustee to oversee the sale of your assets and divide the proceeds among the creditors. You may retain certain assets, known as “exempt property,” in order to get a “fresh start.” After the debt obligation is discharged — and not all debt can be discharged — the bankruptcy filing remains on your credit report for 10 years.
Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is a radical reorganization of your debt rather than a discharging of the debt obligation. Your creditors file claims for the money you owe them, and you make a single monthly payment to an appointed trustee who distributes the money. Chapter 13 is an option for people who don’t pass the means test making them eligible for Chapter 7.
Alternatives to Filing Bankruptcy
For individuals who don’t want to file for bankruptcy, there are other options.
This can be a do-it-yourself option, where you use the equity in your home to pay off your consumer debts and are left with a higher monthly payment. Or you can hire a professional to work with creditors on your behalf.
This is the process by which you get creditors to agree to forgive a percentage of your unsecured debt in exchange for your continuing to make payments. Most creditors will agree to debt settlement because they stand more to gain with this approach than they do with bankruptcy.
Foreclosure or Short Sale
Foreclosure and short sale are other alternatives to bankruptcy. Although the primary residence cannot be seized in bankruptcy cases, some individuals run into debt because they are unable to make their mortgage payments and unable to restructure the loan. Bankruptcy and foreclosure have a similar negative impact on your credit score, but if you opt to sell the home for less than you owe on it — a “short sale” — you could escape relatively unscathed if the home is not “underwater” at the time of the sale.
How We Use These Tools to Help You
At our Lexington offices of Bunch & Brock, we go the extra mile to stop the threat that mortgage foreclosure can pose to financially desperate working people.
If you missed mortgage payments and are under threat of foreclosure, or even if foreclosure proceedings have started, you still may be able to keep your home. Through a Chapter 13 bankruptcy filing, our debt relief and foreclosure attorneys can help you retain your house and gain some financial wiggle room.
If you are a consumer or business facing foreclosure, lawsuits, liens, repossession or wage garnishment, we’ll find the best option to help eliminate your debt. You’ll receive quality legal counsel and the kind of personal attention you need to navigate through actions like Chapter 7 and Chapter 13 bankruptcy filings, debt consolidation, credit card debt relief, and foreclosure proceedings.
Using Chapter 13, we can stop the threat of vehicle repossession, wage garnishment, and creditor harassment, too. Nor should other personal property, or your pension, be in danger.
Bunch & Brock, Attorneys at Law, has helped thousands of Kentuckians deal successfully with debt relief and foreclosure problems. And we can help you.
At Bunch & Brock, Attorneys at Law, we understand the urgency of foreclosure situations. If you have found yourself facing the loss of your home, contact us to protect your legal rights.