There are many reasons it may make sense to file Chapter 7 bankruptcy debtor has written a song about some of them., one
Warren MI reasons to file bankruptcy are the same as most places.
Job gone or pay cut, too much income for mortgage payments on a home worth too little.
Choices come down to things the kids need, or helping VISA make a little more money.
OK, I am prejudiced.
For kids, against VISA.
The mortgage companies and banks, who screamed for bailouts to rescue them from the inevitable consequences of their own bad decisions, rant and rave to Congress about how unfair it would be to lower the principal on mortgage balances for homeowners.
has been modified, again, though not starting until the fall of 2010, to pay mortgage companies for voluntarily reducing principal.
That is, modifying mortgages to lower the total balance owed, not just the interest rate, and even that, temporarily.
Judicial mortgage modification is the way to go.
Of course, creditors do not want people to file, they want to get paid.
They argue that principal forgiveness, if forced on them, cost 700 million, a billion, whatever.
They pretend if that principal is not forgiven, it will get paid.
People are not going to pay 1 Billion dollars more than their homes are worth.
They will walk away, google “strategic default” if you doubt me.
Or, file Chapter 7 bankruptcy and discharge that mortgage debt.
Not forcing principal forgiveness, by amending bankruptcy law, will not put more money into people’s pockets so that they can afford their mortgage payments.
It would provide that the mortgage company be paid what the home is worth, plus interest.
Personally, I would be happy with a law that required debtors in Chapter 13 bankruptcy to pay 110% or 120% of what their home is worth, it is way better than paying 1.5 times, or double, what the home is worth.
And, better for everyone than just walking away from the mortgage loans.
Reasons To File Bankruptcy, Musically Presented