Bankruptcy is seen as a method for individuals and business to eliminate and restructure existing debt. So, with that, most people that come into our office look for ways to do this. However, some debt simply cannot be eliminated easily. Some is not considered “dischargeable” in bankruptcy. Other debt is considered secured. That secured debt can be eliminated. However, to do so, the person considering bankruptcy, in many cases, would have to give up their property (usually homes and cars) if he or she wants to eliminate any further payments.
The current economic downturn has created a desire for many people to eliminate debt and restructure it through governmental means, and not simply through a bankruptcy process. A recent article details the ideas and proposals that many have been creating and promoting. The article states as follows:
As of June 30, roughly 1.6 million homeowners in the U.S. were either delinquent on mortgages or in some stage of the foreclosure process, according to CoreLogic. And the real estate data and analytics company reports that 10.9 million, or 22.5 percent, of U.S. homeowners are underwater on their mortgage -- meaning the value of their homes has fallen so much it is now below the value of their original loan. CoreLogic said the figure, which peaked at 11.3 million in the fourth quarter of 2009, has declined slightly not because home prices are appreciating but because a growing number of mortgages are entering foreclosure.
The nation's banks, meanwhile, still have more than $700 billion in home equity loans and other so-called second lien debt outstanding on those U.S. homes, according to SNL Financial.
Debts owed by American consumers account for almost half of the nearly $9 trillion in worldwide bonds backed by pools of mortgages, car loans, credit card debt and student loans, which were sold to hedge funds, insurers and pension funds and endowments.
And that doesn't include the $4.1 trillion in mortgage debt sold by government-sponsored finance firms Fannie Mae and Freddie Mac.
Many have suggested that the government write off the debt. Other proposals include allowing for bankruptcy to modify home loans for individuals’ primary residences in the same way that the Bankruptcy Code allows for such modification on vehicles and other property. Currently, an individual does not have the ability to modify a loan on a primary residence. However, if a property has a second (or third) loan that is completely unsecured (value of the house is less than the value of the first loan), the unsecured loan can be eliminated.
Contact the San Jose Bankruptcy Attorney at Henshaw Law Office today at (408) 533-1075 to see whether bankruptcy would be a good option for your debt.
Never try to run on our problems. Even if money matters, we should still face it. Even if bankruptcy has occurred, we should keep in our mind that there will be somebody that is willing to help us.
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De Griekenland op de oudheid, heeft faillissement niet bestaan. Als een man schuldig en hij niet kon betalen, hij en zijn vrouw, kinderen of andere personeelsleden werden gedwongen in 'schuldslavernij', totdat de schuldeiser terugverdiend verliezen door hun fysieke arbeid. Vanaf die tijd deze faillissement optreedt.
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