How to keep your home while still owing
The wake of the global credit crunch has left many people in a situation they never imagined they could ever find themselves.
So many has lost their home to creditors (mostly credit card companies). Thereby creating more hard times for already financially embattled families and this is as a result of the fact that people do not understand what the law says. Remember that ignorant of the law is not an excuse.
With help of good bankruptcy professionals, one can file for chapter seven of the bankruptcy law. What the bankruptcy attorney or lawyer does here is to present the case so that the court carries out what is know as MEANS TEST
Means test is a term used to describe the process of analyzing the debtor’s income pattern to determine whether is living a financially reckless life or not. If it is discovered that debtor and his/ her family is living a modest life, and that there is no way they can repay the huge debt, mostly credit card debt, the court will wipe out the entire debt as if they never happened.
If on the other hand the debtor has some surplus to spare after the mean test has been carried out on him, the court will draw up plan on how the debt will be repaid by the debtor. The interest element which is what first led the debtor into debt will be removed.
What the court technically did is that they structured loan repayment (structured settlement) and the credit card company can sell her right in the structured settlement.
On the surface, it may look as if the court is encouraging people to be reckless with their financial life through the provisions of Chapters 7 and 13 of the bankruptcy law, but, it may interest you to know that this option can only be enjoy once in 10 years. What this means is that the provision of chapters 7 and 10 ceases to cover after the first until ten years elapses.
That is the clever aspect of the law that people need to watch out for. I won’t end this article without giving my standard advice on spending habit.
You can avoid bankruptcy and its related headache by simply controlling your spending habit or seek other alternatives to bankruptcy