If you are experiencing severe financial distress due to the recent downturn in the American economy, you certainly are not alone. Many people who never thought they’d lose their jobs and who have always been able to support their families are now finding themselves in a position of having to fend off creditors and making difficult choices about which bills to pay and when. If you are falling further and further behind and cannot decide between filing Chapter 13 bankruptcy and trying to obtain other debt consolidation help, here are some facts to consider.
Keeping Your Home
Under Chapter 13: You usually can keep your home if you agree to continue the lender’s lien on it and are diligent in making your agreed-upon monthly payments after the Chapter 13 terms are made. Any back payments owed to the lender will have to be repaid as part of your Chapter 13 payment plan, of course.
Debt Counseling: A home equity loan, though tempting, does not give you any real protection Against property seizure should you be unable to repay it. If you agree to put any existing sheltered equity into the terms of the loan agreement, you risk losing that money as well.
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