Forbearance may provide you with temporary financial relief that may help you revise your budget. If approved, your mortgage servicer allows you to temporarily stop making monthly payments; you may have an opportunity to pay down some other outstanding bills. As of March 2021, mortgage servicers approved nearly 2.2 million property owners’ forbearance arrangements. According to Bankrate.com, some homeowners used that as an opportunity to reduce their credit card balances by 23% on average. Homeowners who did not request forbearance, however, experienced an average of only a 15% decline in thei ..read more

Filing for chapter 7 bankruptcy may give you a fresh start, but if you do not make some changes, you could find yourself in financial trouble sometime in the future. The good news is there are a number of steps you can take to get you back on track. Making necessary financial changes will not only help prevent you from drowning in debt again, but it will also improve your credit score, which helps you eventually buy a house and get lower interest rates on mortgage, auto and other loans. Immediate changes to make According to U.S. News and World Report, the first thing to do is analyze why the ..read more

As explained by the U.S. Department of Housing and Urban Development, foreclosure proceedings typically begin within a few months of a missed mortgage payment. From there, the lending institution can use one of three foreclosure process to take over ownership of the home. This guide explains those three processes. Understanding the differences between them ensures you can navigate the process with as little stress and anxiety as possible. Judicial foreclosure In this case, your lender would file suit through the applicable court system where you live. Upon receiving notice of non-payment, the ..read more

Tennessee law allows you to keep some personal assets if you file for bankruptcy. You can access debt relief without losing the life you have worked hard to build. Review the exemptions you can retain if you file for bankruptcy in Tennessee. Homestead exemptions The state allows you to keep up to $5,000 in equity in your primary residence. If you and your spouse file together, you can exempt $7,500 in home equity. Families with one or more minor children can exempt $25,000 in home equity. The limit increases for Tennessee residents ages 62 and older. In this case, you can retain $12,500 of equ ..read more

As someone facing debt, you also face the possibility of debt collectors contacting you. In many cases, these debt collectors will stick to what is appropriate and will not overstep their boundaries. But sometimes, a debt collector might utilize tactics illegal under the Fair Debt Collection Practices Act (FDCPA). Some of these tactics fall under harassment, but others fall under misrepresentation instead. Bullying targets of harassment The Consumer Financial Protection Bureau looks into debt collector misrepresentation. This differs from harassment in several ways, though there might be overl ..read more

Getting a notice of foreclosure is very frightening. This is why it is imperative that you do everything you can beforehand to avoid the notice. While you may not be able to control everything related to your economic situation, there are some steps you can take to lessen the likelihood of getting a foreclosure notice from your lender. Just like with many things, the best defense against foreclosure is good offensive maneuvering. According to FindLaw, in order to avoid foreclosure you should act on the problem right away and then remain in constant communication with your lender. Do not ignore ..read more

Once your financial situation starts to spiral out of control, it often proves difficult to get things back on track. If you have no feasible way of repaying what you owe creditors within the next few years, you may want to think about filing for bankruptcy. Depending on your situation, you may decide to move forward with a Chapter 7 or Chapter 13 filing. Both are personal bankruptcy types, but there are some key differences between the two formats. According to Quicken Loans, some of the differences between Chapter 7 and Chapter 13 bankruptcies include how long they take, how you qualify for ..read more

Individuals experiencing serious financial hardship from a job loss may qualify for temporary rental relief. According to the Nashville Tennessean, a household may receive up to one year’s worth of financial aid to pay past due rent. If an individual still finds it difficult to catch up on the bills, he or she may also consider bankruptcy as an option to resolve an unmanageable debt load. By filing a petition, a debtor may maintain the right to remain in his or her current home without fear of eviction during the bankruptcy procedure. How a petition may protect an individual from eviction The ..read more

When you file Chapter 7 bankruptcy, it seems to turn your finances upside down. There are many rules that you must follow or you could end up in trouble with the court. The trustee in your case will give you instructions on various things, and what will happen with your tax returns may be one of them if you file around tax time. When it comes to your tax refund, the IRS says you can receive one during bankruptcy prior to your discharge. However, there may be exceptions or changes in how things occur. Delays You may have a delay in receiving your refund. It depends highly on your case and the c ..read more

Your debt-to-income ratio is simply the amount of monthly debt you have relative to your income. If you do not know your ratio, you may be in for a surprise when trying to finance a home, car or anything else. That is, debt-to-income ratio is a major factor in most lending decisions.  The Consumer Financial Protection Bureau says that any debt-to-income ratio above 43% may make buying a home difficult. Many financial advisors, however, recommend keeping debt-to-income ratio under 30%. Here is how to calculate yours.  Determine your monthly debt First, you must determine how ..read more