Kansas consumers seek effective solutions once legal action has been taken by their creditors. The solution must reduce or stop the impact of these actions. A Bankruptcy Attorney in Lawrence KS, shows these consumers adequate strategies to secure their properties and prevent seizures.
Will the Creditors Accept a Settlement?
Select creditors accept settlements to eliminate the debt entirely. Settlements are accepted to avoid potential insurance claims to cover the creditor’s loss. By accepting a reduced value, they acquire a majority of the debt without increasing their own insurance premiums. In some instances, the attorney could acquire a settlement that is less than fifty percent of the total debt. They could also acquire settlements divided into installments.
Is Loan Modification Possible?
A loan modification could make the payments more affordable. If the original terms of the loan generated a hardship, the attorney requests a modification. The first rule of extended a mortgage is to identify the most affordable value. If the consumer couldn’t initially afford the payment based on their income, the attorney identifies any predatory lending practices.
Additionally, a loan modification could equate to refinancing. When this is possible, the delinquent value is placed at the end of the loan. The consumer restarts payments the following month. They remain responsible for any late charges that accumulated when the delinquency began.
What Bankruptcy Chapter Should the Consumer Choose?
Consumers that chose bankruptcy should evaluate these chapters based on their advantages. A chapter 13 bankruptcy provides more advantages than chapter 7 such as a lengthy automatic stay. However, the chapter 7 claim is completed within a six-month period.
The first step for acquiring a claim is to prove that the consumer qualifies. They qualify based on their income and total asset value. The attorney helps them collect documentation needed to prove these qualifications.
Kansas consumers seek solutions to prevent damaging legal action. These measures could prevent them from losing properties due to delinquent payments. They could also provide them with a more affordable solution to an overwhelming amount of debt. Consumers who need a solution should hire a Bankruptcy Attorney in Lawrence KS, like Business Name today.
