Debt Rescue Law is committed to providing excellent services to our clients. You are more than just a client to us, and we will provide you our best services to overcome the burden of debt and get back to the things that matter most. Rest assured that we will handle your case diligently. We have a team that is available 24/7!
As you face difficulties in negotiating your debts, an attorney can handle those negotiations to allow you to focus on other areas during a hard time. Lawyers are known to be problem solvers, negotiators, and have a wide range of knowledge about the law. At Debt Rescue Law, our experienced attorneys will help put a stop to the harassment and threats of your creditors, negotiate for you and explore all the options so that you can quickly get back on your feet.
During the initial consultation the most essential documents you need to bring are the list of your outstanding debts, your significant assets, such as your home or car loan information, and your income documentation.
There are various forms of debt, but the most common are credit cards, mortgages, student loans, medical debts, and tax debts. We offer a wide range of legal services for debt solutions, including loan modification, bankruptcy, foreclosure defense, short sale, debt settlement, and student loan settlement. We want to provide you the best and most suitable financial option for you and your situation!
Debt Rescue Law is committed to assisting our clients in obtaining their financial goals in the areas of bankruptcy, loan modification, short sale, foreclosure defense, debt settlement, and student loan settlement. We want to provide you with financial freedom and options during such a difficult time!
Tackling a mountain of debt on your own is overwhelming! Reach out to us, and we can set up a free consultation to begin taking that burden off of your shoulders!
Start the process as soon as possible and decide if you’ll need an attorney to guide you. At Debt Rescue Law we can help you gather all required documents and compile your hardship letter to submit to your lender. This process can take up to 30 days or longer, depending on your lender. Lenders will conduct a trial modification period, allowing you to have a modified mortgage loan payment for three months. It serves as proof of your ability to make the modified payment in the future. After the permanent agreement is finalized, you can make your monthly mortgage payment that is stated by the final loan modification.
A loan modification will help the borrower lower the monthly payments, which allows the borrower to avoid a short sale or foreclosure. By doing this, it will also give you the capacity to clear your balances and ensure that you will be able to maintain monthly payments on the mortgage. By avoiding foreclosure, you as the borrower are then able to avoid having severe delinquent debts as well as adverse effects on your credit score.
Common hardships that lenders may look for when granting a modification are divorce, loss of employment, disability, death of a spouse, severe illness, military relocation, reduction in income, and if you can’t afford your payments, but can afford a modified mortgage.
To be qualified for a loan modification program, you need to prove that you are suffering financial hardship, a longer-term situation such as a loss of a job, severe illness, divorce, excessive debt, and or medical bills. The property securing your mortgage loan must be your primary residence, not a second home or rental property. You will also need to prove you are unable to meet your current mortgage payments, but showing proof that you will be able to maintain a modified loan payment.
The best way to approach a loan modification with your lender is to be equipped with the information and understanding of what types of options are possible. At Debt Rescue Law, we can help you find all possible options for your loan modification. There are options such as the reduction of the principal (allows a reduction in your loan from your original debt), lower interest rate (lowers the interest on your existing loan), interest rate conversion (converts the variable-rate to a fixed-rate), and extended loan period (extends the term of the loan and lowers your monthly mortgage payments). We will work with you and your lender to find the best option for you and your situation!
A loan modification could affect your credit score. The credit report can show multiple factors, including a loan modification, but this will depend on how the lender presents the information to the credit bureau. On the other hand, if you’re in the process of a loan modification and miss one of your mortgage payments or any loan payments, this will reflect on the report even if a loan modification is approved.
If you applied for a loan modification with your lender, but have been denied, you can either appeal the denial or fix the issues that you currently have with your application. Begin by looking at your denial letter, and what statements are the critical points of being denied. Make necessary changes regarding the denial, appeal the denial, and seek experienced attorneys so they can review your situation or provide an alternative recommendation. You want to allow some time to pass as there might be some changes in your circumstances, and you can initiate a new application. DO NOT GIVE UP!
Bankruptcy is a legal proceeding that can allow individuals or businesses that are unable to keep up with debt payments to seek debt relief. Bankruptcy offers the possibility of eliminating your financial burdens by either liquidating your assets or reorganizing your debts into manageable payments over an extended time. While not all debts and obligations can be removed through bankruptcy, it can provide you with a fresh start.
To file Chapter 7 bankruptcy, debtors must pay fees associated with the cost of the case of $335.00, as well as bankruptcy attorney fees of $799.00 for a total of $1,174.00 for a Chapter 7. To file for Chapter 13 bankruptcy, debtors must pay fees associated with the cost of the case of $310.00 plus lawyer’s fees.
To declare bankruptcy, you would need to go through the process of having all income and expense forms, loan documents, any credit cards, as well as any other debts you may have. You will need to go through the process of filing for bankruptcy and be approved by the trustee to declare bankruptcy. This will be the process you will go through in order to file for both personal, Chapter 7 and Chapter 13 Bankruptcy.
If you are overwhelmed with debt and have lost your job or had another significant hardship in life, then bankruptcy may be the best option for you. Bankruptcy may be for you if you are under a mountain of debt, behind on your mortgage and looking at facing foreclosure and being harassed by debt collectors.
After filing bankruptcy, people initially see their credit score drop by 130 to 200 points, depending on how high their credit score was prior to filing bankruptcy. The people who have credit scores in the 700s may see more drastic credit score drops than people who have credit scores in the 600s. Some people see no change in their credit scores because they already had a low credit score and there is not much more than their credit can drop. As time progresses, people start to see their credit scores go up because their unsecured debt is wiped out. Once your bankruptcy is done, you have obtained your discharge, your unsecured debts are discharged, you can move forward and start rebuilding your credit. While a bankruptcy filing will remain on one’s record for 7 to 10 years, many debtors can begin working towards improving their credit by obtaining a secured credit card or becoming an authorized user on a secured credit card. In many cases, after you have obtained your discharge, creditors will start sending you credit card applications, because they know that you will not be able to file a Chapter 7 bankruptcy for another 8 years.
Under some circumstances, you may be able to keep some credit cards if the creditor agrees. However, there are many factors to consider such as the credit card balance at the time of bankruptcy, and whether you will be able to pay the present and future credit card debt. Keep in mind that once you are discharged from bankruptcy, creditors will normally send you new credit card offers in the mail, which may be a better option.
Chapter 7 Bankruptcy is the quickest and easiest bankruptcy process, as well as the best option that can be done in around six months or less. In Chapter 7 bankruptcy, all non-exempt assets are liquidated, and the distributions of the proceeds are paid to your creditors. However, a Chapter 13 Bankruptcy is considered as a reorganization bankruptcy since the debtor is attempting to reorganize their debts by offering the creditor partial or full repayment through a repayment plan. The typical repayment plan under Chapter 13 is three-to-five years.
Chapter 7 bankruptcy is for individuals with severe financial hardships that are unable to pay back their debts or bring payments current. Chapter 13 bankruptcy is designed for individuals, including those operating as sole proprietors, whose income is above the state median income and have a significant amount of secured debt that they cannot repay. The decision of which type of personal bankruptcy to file, Chapter 7 or Chapter 13, is determined through the Bankruptcy Means Test. This test, which is conducted by a court-appointed trustee, calculates the debtor’s income, expenses, and debts to see if any repayment is possible.
You can use Nevada’s bankruptcy exemptions for the amount of equity in your home if you have lived in Nevada for the past 2 years. Nevada has a generous homestead exemption of $605,000 for the amount of equity in your home. You will need to homestead your property, prior to filing bankruptcy. If you have not lived in Nevada for two years, then you would use the homestead exemption in the state that you lived in for the most part of the 180 days prior to the two year period before filing bankruptcy. The Nevada exemption for vehicles is $15,000.00. If you are married and filing bankruptcy jointly, then you will each have a $15,000.00 vehicle equity exemption. If the person filing bankruptcy is disabled, there is no limit on vehicle equity.
Once a Chapter 7 or Chapter 13 Bankruptcy has been filed, credit card companies and other creditors are required to work directly with us. Once you have filed bankruptcy, this process may take a couple of weeks to reach all of your creditors for them to be informed of your bankruptcy filing. Most actions against you, such as phone calls demanding payment, wage garnishment, or home foreclosure, must cease.
You can use Nevada’s bankruptcy exemptions for the amount of equity in your home if you have lived in Nevada for the past 2 years. Nevada has a generous homestead exemption of $605,000 for the amount of equity in your home. You will need to homestead your property, prior to filing bankruptcy. If you have not lived in Nevada for two years, then you would use the homestead exemption in the state that you lived in for the most part of the 180 days prior to the two year period before filing bankruptcy. The Nevada exemption for vehicles is $15,000.00. If you are married and filing bankruptcy jointly, then you will each have a $15,000.00 vehicle equity exemption. If the person filing bankruptcy is disabled, there is no limit on vehicle equity.
The amount and timeframe on how often you can file bankruptcy varies depending on which Chapter you want to file. To file a Chapter 7 bankruptcy after receiving your discharge, you must wait eight years after the date your previous case was filed. To file a Chapter 13 bankruptcy after you received your discharge, you will need to wait at least two years from the date you filed for Chapter 13.
Almost anyone that owns property in the United States can file bankruptcy. Knowing if you should file bankruptcy will be a decision that is made based on your income and the amount of debts that you are obligated to pay. It is best to use a bankruptcy lawyer and avoid trying to attempt to submit anything online; this will allow you to have the best bankruptcy package to help your case be approved.
A foreclosure is a process where the lender takes possession of your mortgage property due to your failure to maintain mortgage payments. Once a homeowner gets several payments behind, the mortgage holder may initiate foreclosure proceedings. In foreclosure, the homeowner’s property is seized as payment of the debt, and the homeowner loses their rights to ownership. There are two types of foreclosure in Nevada, Non-Judicial Foreclosure process (not involving any court action) and the Judicial Foreclosure process (handled through a court system).
You have several options to stop foreclosure. However, you need to act as soon as possible and continue to make mortgage payments. Work with your lender in regards to loan modification options; the lender can change your loan terms by lowering your interest rate or modifying your mortgage terms. Get approval from your lender to list the property for a short sale; there is still time for you to find a buyer for your home to stop the foreclosure from being finalized. Filing for bankruptcy would be your last resort but would put a halt to the foreclosure process and provides you time to negotiate a payment plan with your lender and creditors.
Once a seller stops paying on their mortgage, their lender can record what is called a Notice of Breach or Default (also known as a NOD-See NRS 107.080 (4)) Three months must pass after the Notice of Default is posted before the lender can record the Notice of Sale. Once the three months have passed, or if the home is owner-occupied and the homeowner elects to participate in the mediation process, then the lender can proceed with the foreclosure by choosing to sell the property. So while you are in the process of mediation, you should retain a law firm to assist you in filling out your paperwork, attend the mediation on your behalf, and explore options to stop foreclosure.
A lot of people see their credit scores go up because their unsecured debt is wiped out. Once your bankruptcy is done, you have obtained your discharge, your unsecured debts are discharged, you can move forward and start rebuilding your credit. While a bankruptcy filing will remain on one’s record for 7 to 10 years, many debtors can begin working towards improving their credit by obtaining a secured credit card or becoming an authorized user on a secured credit card. In many cases, after you have obtained your discharge, creditors will start sending you credit card applications, because they know that you will not be able to file a Chapter 7 bankruptcy for another 8 years.
Yes, you will be able to buy a home after foreclosure with FHA, Freddie Mac, Fannie Mae, VA, USDA mortgage, and other lenders, but you need to consider the waiting period they require. For FHA loans three years, Freddie Mac/ Fannie Mae loans seven years, VA two years, and USDA loans three years. Other lenders may have a different time frame that they require before they allow you to apply for another mortgage loan.
If you can work with the lender and continue to make some form of payment, then yes, you would want to continue to make mortgage payments. If the foreclosure process has begun, there is still time to stop the process and keep your home. You would need to catch up on late payments and fees to reinstate your mortgage loan.
A short sale is selling property for less than the outstanding loan obligations on the property. By short selling, the homeowner can avoid foreclosure. For a homeowner to be approved for a short sale, the owner needs to show the lender that he or she is facing financial hardship, and the housing market must have gone down so much that the home is no longer worth the remaining balance on the mortgage or mortgages.
It is in your best interest to utilize a real estate agent when going through the short sale process. The reason for this is because you will need to have the lenders’ approval for the sale to be finalized. A real estate agent will know everything that is required and the paperwork that is necessary to help you through a complicated process.
From the lender’s perspective, a short sale costs less than the foreclosure process) when it comes to attorney fees, the eviction process, damage to the property, and costs associated with resale. For a homeowner, a short sale is less harmful to the borrowers’ credit score, especially compared to the effects of foreclosure. Foreclosure effects on the credit score may last three years, whereas the credit score effects of a short sale are 12-18 months.
To qualify for a short sale, you will want to consider if you meet four requirements. These requirements are: the home’s market value has dropped, the mortgage is in or near default status, the seller is facing hardship, the seller has no assets to sell off to pay down the mortgage loan.
If your lender chooses to forgive your debt and you are no longer under obligation to repay the lender, then they are usually required to report the amount forgiven to the IRS on Form 1099-C. If this is the case, then the amount that is reported to the IRS will then be reported as income for federal tax purposes.
Yes, you will be able to repurchase a home. There will be a waiting period before you can reapply for a home loan. Usually, it is between three to four years; it will depend on if the lender will approve your application.
A short sale is less harmful to the homeowner’s credit score, especially compared to the effects of foreclosure. Many clients report their credit score fell between 15-30 points if they were up to date on mortgage payments. The short sale is recorded as a “debt settled less than the full amount,” or “account paid in full for less than the full balance,” or “paid as agreed,” or “paid as settled,” or “negotiated,” or “paid in a settlement but never late,” or “account paid for less than full balance.” If the homeowner is delinquent when the short sale is finished, the credit score will not be as affected either. During this time, the credit score will possibly drop 50-80 points per loan that the homeowner was delinquent.
Federal loans are provided through the government, while private loans are offered through banks and other financial institutions. Repayment of federal student loans revolve around income, but some are not tied to income and are for all types of federal loans. By utilizing a private loan, students need to have a good credit score. If they do not have a good credit score, they can use a cosigner to qualify for the loans. By having a cosigner on the loan, the student is responsible for repayment, but the cosigner is also accountable for repayment if the student fails to pay the loan.
You have a six-month grace period before you start paying your student loans. You don’t have to pay for it after graduation. However, your six-month will be a chance to find a job, earn an income, and research for student loan repayment options. It is also essential that you check what type of federal or private student loans you have from your school or lender before you begin repayment.
Discharging student loans is one of the most challenging and complicated legal processes in bankruptcy, but it is possible. You need to prove to the bankruptcy court that you are experiencing undue hardship. They will use the Brunner test to determine that you are entirely unable to pay your student loans. However, meeting the standard of undue hardship is difficult, so it is best to speak with our bankruptcy lawyers to see if there is a possibility with your current situation.
If you find yourself not able to maintain your student loan payments, there will be events of default. The first missed payment may be subject to late fees and penalties. Once you are 30 days late on loan payments, the loan will then become delinquent and will have additional fees and penalty charges, which will all be outlined in your loan agreement. Any payments that are not made after 30 days will then start to be reported to credit bureaus as missed payments. After 270 days of nonpayment (ex. 9 months without payment), your loans move to default status. At this point, the lender will have the ability to decide if they will write your loan off as a loss and sell it to a collection agency for them to begin attempting to collect payments.
