New Bankruptcy Legislation May Make it Harder to Find an AttorneyWritten by Charles Essmeier
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Under new legislation most filers will be forced to file for bankruptcy under more complicated Chapter 13. A Chapter 13 filing, which requires structuring of a repayment plan, is somewhat more complicated and generally costs two to three times as much in legal fees. Adding to complication is fact that new legislation will hold attorneys for those filing for bankruptcy liable for paperwork issues, leaving attorneys vulnerable to lawsuits from both bankruptcy trustees and customers on whose behalf they file.
What this means to consumer is that good legal help will be expensive and hard to find once new bankruptcy law takes effect. Attorneys who specialize in bankruptcy cases will undoubtedly raise their rates significantly in order to offset their greater risk. Attorneys who seldom work on bankruptcy cases may simply stop handling them, thinking that additional risk of a lawsuit isn’t worth their trouble. Anyone who is currently experiencing debt problems, which might require help of a bankruptcy attorney, should probably meet with one now. It is better to find one now, even if you don’t need one, than to need one later and realize that you cannot find one.
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and StructuredSettlementHelp.com, a site devoted to information regarding structured settlements.
| | Interest-only Mortgages Have Their PitfallsWritten by Charles Essmeier
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that doesn’t build equity would seem to be a bad idea. Equity has long been used as a last resort source of funding for emergencies. And yet, with price of homes rising so quickly these days, many buyers don’t seem to care. Equity can be built two ways – either through paying down principal or by an increase in market value of home. If value of your home increases, so does your equity, even if you are only paying interest on mortgage. This is great, so long as home prices continue to increase. But what if prices fall?
There are potential problems with interest-only financing. Interest-only mortgages have variable interest rates. If interest rates rise, mortgage payments will increase. If payments increase beyond level of affordability, homeowners could be forced to sell their homes. This could lead to a glut in housing market, causing prices to fall. Owners wishing to sell could find that they owe more money than their home is worth and that they have no equity.
The interest-only mortgage is a useful tool to help people buy a home they otherwise might not be able to afford. Prospective home buyers should consider whether taking out such a mortgage is a good idea, or whether they might be better off buying a less expensive home.
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation information and HomeEquityHelp.net, a site devoted to information on home equity loans.
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