Kentucky Bankruptcy Lawyers Blog

It's certainly a buyer's market in the real estate world, but what does that mean for those who already have a home and are being hampered by a possible foreclosure?

Proof of the problem can be seen on foreclosure tracking website RealtyTrac, which shows that much of Louisville is in a high foreclosure rate right now. Ten of the 24 ZIP codes are in an area where as few as 1 in every 228 housing units is in foreclosure in Louisville.

Yet, our Louisville bankruptcy lawyers have also noted that at the same time that many residents are dealing with a foreclosure, The Courier-Journal is reporting that the Kentucky Housing Corp. is offering its lowest mortgage rates in 40 years.

The state-chartered housing finance agency is offering borrowers with certain income limits, credit scores and other criteria 30-year, fixed-rate mortgages at 3.375 percent on the low end. The agency provides rates for first-time buyers and those with moderate incomes, but consumers must work with agency-approved lenders.

This all sounds great if you're looking to cash in on the depressed real estate market and get a great deal. But what if you already bought your dream home and ended up with a bad interest rate because it was a seller's market?

Flash forward a few years and now you may have hit a tough stretch financially with someone in your family losing a job, getting hit hard with a major medical bill or having to worry about the rising costs of day-to-day bills? For those with a variable mortgage rate that suddenly has spiked, leading to higher payments, this could be an especially troubling time.

Losing your home to foreclosure is never a good option. In fact, it can be devastating to children who could have their world turned upside down by having to move. If your credit score has taken a hit because of missed payments and other financial troubles, a foreclosure can make matters worse.

So, why not try to keep your house? One clear way is through a Louisville bankruptcy. Filing for bankruptcy immediately stops foreclosure in its tracks. Whether the family is receiving its first missed payment notice or the house is scheduled to be auctioned off at the courthouse, filing for bankruptcy can stop foreclosure.

What filing does is halt any attempts creditors have made to get money or possessions from you, including wage garnishments and foreclosure. This then allows your Louisville bankruptcy lawyer to use the laws on the books to help you get out of your debt.

Bankruptcy laws are supposed to help the consumer get out of debt after other methods haven't worked. These judges are trained and expected to provide help for everyday people who have gotten stung by high interest rates and a house with an underwater mortgage, meaning it is worth less than what the homeowners is paying on it. It's a bad situation that can be made better with bankruptcy laws that were created to help.

Continue reading "Louisville Bankruptcy Can Help Stop the Rise of Foreclosures" »

It's the beginning of 2012 and while it's a new year, for most people, the financial baggage of 2011 didn't stay behind in December. Times are tough, finances are tight and after the holiday season, bills may be looming.

Our Louisville bankruptcy lawyers recognize the frustration and pain that many people are going through right now financially. Government programs haven't done much to help working-class people, jobs are still tough to find, bad mortgages are still hurting families and prices keep climbing for groceries and other everyday needs.

Our lawyers also recognize that filing for Louisville bankruptcy has benefits for those who take advantage of these laws. They are consumer-focused and allow people a fresh start when expenses have gotten out of control and money is tight.

Some believe that bankruptcy is a bad option because it can hurt a person's credit, but the opposite is true. If a person has missed payments and is behind on various bills, his or her credit score has likely taken a tumble.

Filing for bankruptcy will actually begin to repair what has been broken by the past. The purpose of bankruptcy is to provide assistance to consumers who have fallen into bad times, often because of circumstances beyond their control.

The most obvious in recent years has been the housing collapse, which has affected nearly every American. As foreclosures have increased, housing prices have dwindled. Bad loans that people were trapped into signing years before the housing bubble burst are now coming back to haunt them. As the housing market collapsed, so did the rest of the economy, costing millions of people their jobs. And without a job, money has gotten even tighter.

It's a cycle that no one has figured out how to fix and many Louisville residents are stuck in the middle. They are trying to get by, but are having difficulty and aren't sure how long the difficulty will last.

Creating a plan to get out of debt and to try to get out of tough times takes a lot of work. Sometimes, it can be done without the help of bankruptcy, but through other financial and legal avenues, such as a short sale, credit counseling or stopping wage garnishment, there are ways to improve your money situation.

These are a few smaller steps that people can take to try to make some progress in the area of personal finances:

Quit smoking or lose weight -- Common New Year's resolutions, but these could cut down on insurance premiums and save a little money. Obese policyholders and smokers pay between 15 and 22 percent more for insurance than others.

Shop smart -- Clipping coupons, not being tempted by buy-one-get-one-free sales and using generic brands can keep some money in the wallet.

Simplify your finances -- Set up online accounts so you don't have to worry about checks, stamps and the mail. Max out your savings and do it automatically so you don't have to worry about forgetting.

Get smart about money -- Don't be in the dark about money issues, but study up on terms and that will allow you to be more active in financial planning.

Plan for the unexpected -- Start an emergency fund -- most experts suggest having six month's worth of funds set aside.

Pay down your debt -- Paying off your high-interest debt can save you money in the long run. And try to pay more than the minimum.

Create a basic budget -- Don't make it unrealistic, but attempt to keep it simple. Be transparent and allow it to be fluid.

Continue reading "A New Year's Resolution: Strengthening Your Finances Through Louisville Bankruptcy" »

With recent news that Kentucky's divorce rate is much higher than the national average, it's important to note that while a divorce can cause severe emotional issues, there are also obvious financial issues that can arise.

It's certainly possible that considering filing for bankruptcy in Louisville could help couples who are in the processes of filing for divorce or whose divorce has been finalized.

Especially in this current economy, our Louisville bankruptcy lawyers have been able to help many people who have fallen on hard times after having to split assets and begin living with one income instead of two. Alimony payments, child support and other expenses may have made money tight.

The Louisville City Examiner recently reported that Kentucky's divorce rate is 33 percent higher than the national average, according to census figures. The state's rate works out to roughly 13 per 1,000 people. Nationwide, the average is 9.5 per 1,000 who end up getting divorced.

Residents of the South have had higher divorce rates, in general, than other regions of the country in recent years as well. As recent as 2009 data, the rates were 10.2 per 1,000 for men and 11.1 per 1,000 women. At the time, the national numbers were 9.2 for men and 9.7 for women. In the Northeast, divorce rates were lower -- 7.2 for men and 7.5 for women.

Experts believe that divorce rates are higher because marriage rates are higher. People in other parts of the country also wait longer to get married, while Southerners are more apt to get married at a younger age. Education and employment are also factors in the numbers being higher.

So, what does this have to do with money? Any time a couple splits up, their lives change. If they have purchased a house together and now are getting divorced, it's likely that neither wants to keep the house because what once was considered a good investment is now a losing proposition.

Other assets will have to be divided and debt will be split up as well. There are tax implications that can come back to haunt divorcees as well.

It's possible that a couple could decide to file a joint bankruptcy before they get divorced in order to eliminate debt before the split is final. That will allow them to eliminate one more problem they need to deal with after the divorce.

But oftentimes, the breakup is so difficult they are unwilling to consider that. If a divorced person comes out of a split with mounds of debt and less cash than he or she had before, it's possible that bankruptcy could help. Filing for bankruptcy stops debt collections and allows the person to eliminate debt.

If you have just gone through a divorce or you are in the process, take a look at your finances. A divorce provides the chance for a fresh start. So, why hang on to the financial baggage, too? Consider a bankruptcy to get rid of your debt and wipe the slate clean as you start a new life.

Continue reading "Filing for Bankruptcy in Louisville Can Benefit Divorcees" »