A Loan Modification is a permanent change in one or more of the terms of a homeowner’s loan. It allows the loan to be reinstated, and results in a payment the homeowner can afford.

The homeowner must reach an agreement with the lender to modify the loan. Generally the lender will be a little reluctant to agree for a loan modification as modification typically results in less interest.

The …

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… in fact keep two cars but could only do so if it did not diminish bankruptcy plan payments for unsecured creditors.

The details of the Chapter 13 bankruptcy case:

The unmarried Chapter 13 debtor took Means Test deductions for two cars. One was a 2004 Honda Odyssey worth $10,949 and encumbered by a loan with a principal balance of $9,368. The other was a 2007 Ford 500 worth $12,730 and encumbered by a loan with a principal balance of $27,737. Because the Ford was purchased less than …

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… bankruptcy and keep their home?  The short answer is no.  A debtor can discharge the home equity loan in Chapter 7 bankruptcy but they cannot discharge it AND keep their home.  However, if a debtor would like to keep their home, they may be able to file Chapter 13 bankruptcy and repay both their HELOC and their mortgage over a 3 to 5 year period. If, after completing your Chapter 13 bankruptcy repayment plan, there is a balance on your HELOC loan that may be discharged, effectively …

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… of the worse pieces of advice given to debtors considering bankruptcy is to get a home equity loan.  That could be a big mistake.  Here a few reasons why getting a home equity loan to avoid bankruptcy might not be the right move for you:

Typically, you can’t use debt to get out of debt. Anyone who has filed bankruptcy can attest to that truth.  For most debtors considering bankruptcy, their financial troubles are caused by two problems, 1) lack of income and 2) too …

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… House of Representatives approved legislation last week that would cut major banks and student loan giant Sallie Mae out of a large slice of the $92 billion university student loan business if passed by the Senate.  Under the bill H.R. 3221 –the Student Aid and Fiscal Responsibility Act of 2009, all new student loans would originate with the Direct Student Loan Program as of July 1, 2010. Many big banks and their supporters are lobbying hard to crush the legislation in the Senate so …

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Many debtors considering bankruptcy often want to keep their car while discharging their unsecured debts such as a credit card.  But depending on how their car loan document was written they may not be able to keep their car without paying off both the car loan balance and the credit card balance.  How can this be?  Well, if a debtor has taken out a car loan from a credit union the loan document will usually include what’s called a cross collateral clause.  Cross collateral …

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When discussing “unsecured” debt most debtors are speaking of credit card debt. But unsecured debt could also include a personal loan, loans from friends/family, unpaid rent etc.  Basically, unsecured debt is any debt that is not attached to some type of property.  Unsecured creditors do not have the right to seize a debtor’s property once the debtor has defaulted on the loan. However, unsecured debt can …

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… According to the Center for Responsible Lending, the proposed legislation allowing mortgage loan modification in bankruptcy could help 600,000 families avoid foreclosure.

Under the proposed plan allowing mortgage loans modification in bankruptcy, only homeowners with an existing mortgage would be eligible for mortgage loan modification in bankruptcy. Also, the homeowner would have to prove to the bankruptcy court that he/she attempted to modify the mortgage loan with the mortgage …

Comment by jede ferrani: … your home loan. Thanks for sharing. Many people …

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… a small slice of those consumers are paying down credit cards to the detriment of their mortgage loan. The number of consumers delinquent on their mortgages but current on their credit cards rose to 6.6% in the third quarter of 2009 from 4.3% in the first quarter of 2008, according to a TransUnion study of 27 million anonymous consumer records pulled randomly from its database. Meanwhile, the portion of those who fell behind on credit-card payments but paid their mortgage dropped to 3.6% …

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… feet.”  While in theory it seems to be possible to avoid bankruptcy by taking out a personal loan and using that to survive until you can get another job or more income, it rarely works out that way.  Here are three things you need to consider before you take out the personal loan in the hopes of avoiding bankruptcy:

Are you being rushed into taking out a personal loan by someone else?  Is your spouse, relatives or even your creditors suggesting that you should take out a …

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… Ways To Discharge My Student Loans Besides Bankruptcy? ”, a debtor who cannot discharge their loan in bankruptcy can receive a discharge if they are permanently disabled, dead (and in the case of PLUS loans, the parents will receive the discharge) or a veteran who has been permanently disabled in the line of duty.  Let’s take a look at some other ways to discharge your student loan.

You may receive a discharge of you student loans if your student loan was falsely certified. Student …

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As we have previously mentioned, discharging a student loan in bankruptcy can be difficult to say the least.  In order to receive a bankruptcy discharge for your student loans, you must be able to prove that repaying the loan would cause an undue hardship.  Unfortunately, “undue hardship” has not been specifically defined. This lack of a clear definition has created a situation where two debtors with similar circumstances will experience a …

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