Is Bankruptcy Your Financial Salvation?
[This article is to promote a local bankruptcy attorney. In the final version, his contact information is added at the end.]
How Bad Can It Get?
You’re rolling along, paying your bills, even putting a bit of money in savings each month. You’re prepared for a rainy day…but not a tsunami. Then one day, tragedy strikes. You lose your job or a family member gets sick and the medical bills start piling up. Now you’re struggling to make your mortgage payments. What can you do?
You’re thinking if things get really bad, you can just file for bankruptcy. Truth is, you’re not really sure what that means. It just sounds like a way out.
Bankruptcy may be the answer to your troubled prayers. There are several different types of bankruptcies.
Chapters 7, 9, 11, 12, 13, And 15 – Dealers Choice
There are six different types of bankruptcies outlined in the U.S. Bankruptcy Code. The numbers refer to the chapters in the code. Unless you’re a municipality or doing business with a foreign country, chapters 9 and 15 won’t apply to you. Although you may own a family farm (not a far-fetched possibility in Texas), chapter 12 is not likely a consideration for you. Most folks have heard about the other types: Chapters 7, 11, and 13. Which type is right for you?
Chapter 7 – Liquidate & Close Up Shop
Think of Chapter 7 bankruptcy as the “you can’t squeeze blood out of a stone” type of financial relief. When an individual just can’t come up with the cash – even given extra time – they will file for Chapter 7 bankruptcy. Businesses can also file under Chapter 7 if they want to liquidate all their assets and close up shop.
In fact, Chapter 7 bankruptcy is referred to as “liquidation.” It’s a way of starting over. Big, bad debt is holding you down and you can legally cry “uncle.” (For those a bit younger, this is when the neighborhood bully would hold you down until you would scream “uncle.” Why that particular word? Why not?)
Can I Keep My Home and Rolex?
Can you keep your home if you file for Chapter 7 bankruptcy? The answer is: Maybe. If you are current on your mortgage and don’t have a lot of equity in the home that can be used to pay your debts, it is more likely. If you have benefited from rising home prices, you may have to liquidate that asset to raise cash to pay off your creditors.
There are many assets that typically cannot be discharged under Chapter 7 bankruptcy. (A discharged debt is one that you are no longer personally liable for. The creditor cannot come after you for it, say, through collections.) It’s a pretty long list and includes back child support, alimony, and student loans. It also includes luxury goods over certain proscribed amounts. So, if you think that you can go buy a 30K engagement ring for your honey prior to filing Chapter 7 bankruptcy and not have to pay for it, think again. Ultimately, it is the judge who gives the final word on whether a debt can be discharged. A judge will not likely think kindly on a person who believes they can get thousands of dollars in luxury goods for free through bankruptcy.
Chapter 11 – Keep The Doors Open
This type of bankruptcy is for commercial businesses who want to remain in business. An agreement is made with creditors to get at least some of their money back without forcing the enterprise to close its doors.
Chapter 13 – Let’s Make A Deal
Chapter 13 bankruptcy is for those who have a regular income and want to pay their creditors. They just need more time and perhaps some debt relief. If you’re in debt up to your ears, want to do the right thing, but not lose your home, Chapter 13 bankruptcy may be right for you.
Under Chapter 13 bankruptcy you can discharge debts that are not allowable under Chapter 7 bankruptcy. Items such as alimony and student loans. A plan to payback your creditors is created and must be approved by a judge. Your payments go through a trustee. Over the life of the plan (usually three to five years), you deal with the trustee who in turn deals with the creditors. Any collection activity must stop and your creditors cannot take further legal steps to collect your outstanding debt.
Exemptions – Fido & The Family Bible
Exemptions are assets that the creditors cannot force you to sell. There is a list of federal exemptions and a list of state exemptions. In Texas, you pick one list to work from. The Texas list of exemptions is more generous. It’s also quite interesting. You can exempt up to two firearms, your family bible, and some of your pets. There is a total exemption limit depending on your marital status.
Don’t Go It Alone!
Bankruptcy is not the right choice for everyone, but it may be the right choice for you. Don’t go it alone! Find a reputable bankruptcy attorney to explain your options and walk you through each step of the process. It just may save your home.
How To Get The Best Price for Your Home
Originally posted on www.ShielaHanlon.net.
We know that selling your home is a stressful. For most people, selling their home is the biggest financial transaction they will make in their lives.
Selling your home comes down to three key areas:
Price
You want to price your home at or just below market value. Your real estate agent will provide you with information on comparable homes that have recently sold in your neighborhood. This, in consideration of your personal situation, will help you make the best decision on how to price your home. As your agent receives feedback from prospective buyers and other real estate agents, you can revisit the price, if needed.
Presentation
You want to show your home in the best light possible. And, you want to make
your home appeal to the broadest audience. The more prospective buyers your home attracts, the higher the chance you will sell your home quickly for a good price.
This is the hardest part of selling a home. You have to “de-personalize” the very place that has been a reflection of your individuality; your personal expression of your lifestyle and beliefs. Now, you need to step back and let prospective buyers envision themselves and their life in the home.
Access
You want to make it as easy as possible for buyers to see your home. It’s not easy to do while you’re living there. Allowing a “For Sale” sign to be placed on the property, leaving a lockbox on the door, and keeping the amount of time required to give notice of a showing are all great ways to make your home as accessible to prospective buyers as possible.
Your Home’s Benefits
Every home has at least one key feature that is especially desirable to buyers. Your real estate agent can help you determine what is the best aspect of your home to focus on when staging and marketing your home.
General Staging Recommendations
Suggestions to best show your home to sell quickly in today’s market.
All of these suggestions are to make your home look as big and bright as possible. Why? Because this is what most buyers want.
- Neutralize, de-clutter, and de-personalize to attract the largest potential buyer audience possible. Remember, you want to sell your home! People often have different tastes, different beliefs, different lifestyles, etc. Your goal is to make potential buyers feel comfortable viewing your home.
- The use of each room should be defined. A “multi-use” room confuses potential buyers. When you leave things “up to their imagination” potential buyers may not imagine things in a way that leads to an offer.
- Each room should look as large as possible. You are selling square footage. A 1200 square foot home can “feel” like a 1500 square foot home – and the reverse is also true!
- A prospective buyer should be able to easily move about every room in the home. Nothing should be blocking their way to a window. Especially a window that looks out onto pretty landscaping or views.
The Aroma of Home
We are often focused on how a home looks, but how it smells is nearly as 
important. Smell is a very powerful sense that can evoke pleasant – or unpleasant — memories. You want your buyers to feel that “aroma of home.”
- If you have pets, it is best to have a friend or family member take care of them – or board them – while you are selling the home. If this is not possible, be sure to have somewhere they can safely stay (like a carrier or penned-in area) during showings.
- We get used to the smell of our pets. The smell of a home is very important. I have personally seen buyers walk out of a
home without touring it because they didn’t like the way it smelled.
If possible, keep the areas that your pet(s) can roam around in to a minimum. - If you smoke in the house, stop now. Like pets, a smoker does not realize how smoke residue smells to non-smokers. Switching to electronic cigarettes is one option.
- Use a pleasant-smelling, but not too strong, plug in. Vanilla, cinnamon, and the like are good options.
- Keep a can of Febreze nearby. A little spray around the rugs, bathrooms, and furniture before a showing can do wonders.
Getting Help
You may want to consider hiring help to clean, paint, and repair. Your real estate agent may be able to recommend some vendors. Otherwise, Yelp, Angie’s List, Thumbtack.com and HomeAdvisor are all good sources. Always get at least three bids for larger jobs. Check reviews and references. See Resources below.
You don’t have to go it alone! Partnering with an experienced Realtor® can help you prepare your home to sell as quickly as possible — for the best possible price.
Shiela Hanlon is a Houston-area Realtor® with many years experience selling residential homes, commercial properties, and land. There are many benefits to working with Shiela. Learn more here.
Resources
https://www.yelp.com/
http://www.angieslist.com/how-it-works.htm
http://www.homeadvisor.com/
https://www.thumbtack.com/