Are you sitting on a financial time-bomb ticking away on your home?

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Some of my clients end up in my office because they entered into some adjustable rate loan and the payment increases to a point they can no longer pay the debt. I thought the time of these types of mortgages had passed with the 2008 real estate bubble bursting. I may be wrong.

"Millions of consumers will have to absorb a major hit to their household budget in the coming months. About $265 billion in home equity lines of credit (HELOCs) will enter the repayment period in the next few years, according to a study from Experian, and consumers may see their monthly payments spike — in some cases, triple or quadruple what they previously paid." according to Christine DiGangi as she stated in her article "The $265 Billion Wave That’s About to Crush Homeowners" http://bit.ly/1FnjK2D

In her article, she talks about how many families used the equity in their homes and have only paid the minimum, interest payments, on these loans. Furthermore, since these loans were opened in 2005 through 2008, real estate values have been stagnate. As a result, owners may have difficulty refinancing their loans. She is predicting a skyrocketing rate of HELOC defaults.

Based on what I am seeing in my practice; houses still underwater, lingering unemployment and under-employment, and many struggling to pay what they have and save a little, I tend to think she is accurate. Are you in this situation? If so, it may be time to plan.

Talk to your finance company to figure out what is going to happen and when. Even if you think you know, confirm it. I cannot tell you how many times people have told me, "it went up more than I expected!" or "I never expected it to go up that much!" If you cannot afford it, look for financing now. If that is not possible or you have time, start working on paying down the principal now.

Whatever action you plan to take, start now. Don't wait for the first payment increase to find out you cannot make the new payment and risk losing your home. Know what you are facing and plan now. If you do not, you may find yourself in an office like mine, discussing bankruptcy, realizing you have less options at that point than you may have now.

If you want assistance, legal representation, or just want to know more about Mark Medvesky or Medvesky Law Office, LLC, check out our website at www.medveskylaw.com.

#bankruptcy #Chapter_7 #Chapter_13 #Montgomery_County #law_firm #Bucks_County #Pennsylvania

Student loans - current events - will anything change?

If you listen, read or watch news on the US economy and finances, you know burden of student loans are believed to be a drag on US economic growth. The burden is worse that other debt because there is no reasonable way to get out from under it. Even a mortgage burden can be lifted by giving up the home. But there is no way to give back an education even if you are not using it.

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This is contrary to all ideas of second chances, fresh starts, or getting back on track with your life. While we, in the US, outlawed debtors prison and indentured servitude early in our history, people in financial trouble with student debt probably feel something close to being in prison or an indenture servant. Think about it, how hard it is to function in our electronic world without credit? Obviously, people do it but I don't think it is easy. The impact of student debt and the cost of school has not gone unnoticed in our government.

Here is a recent article that discusses the issue from Senator Al Franken's perspective:  "Sen. Al Franken: Millions of Americans Are Struggling to Pay Off Student Loan Debt & It’s Damaging Economic Growth" http://bit.ly/1SGsEl6. He is joining Senator Elizabeth Warren in her movement to address the student debt crisis. This is worth a read.

 While I don't necessarily agree with all the views of these two political leaders, I believe college costs and debt is out of control. I still pay on my loans and I am 4 years from having my first child enter college. This is an issue for all people in our community. We should become aware of the issue if we are not aware. We should be talking to our political leaders who are not engaged in this discussion.

If your student debt is bogging you down, check the Department of Education website for potential solutions: http://1.usa.gov/1cn75ok. If student debt is only part or your debt problems, bankruptcy may be worth considering. Don't make that decision alone. Talk to an attorney that can help you understand how bankruptcy might provide some relief.

If you want assistance, legal representation, or just want to know more about Mark Medvesky or Medvesky Law Office, LLC, check out our website at www.medveskylaw.com.

#bankruptcy #Chapter_7 #Chapter_13 #Montgomery_County #law_firm #Bucks_County #Pennsylvania

The adminstration's immigration plan continues to be blocked by the courts ...

Earlier this year, a federal court in Texas stopped the current administration from implementing a decision to have the Department of Homeland Security exercise prosecutorial discretion to defer prosecution of immigration violations of an entire class of people. The Court of Appeals for the 5th Circuit upheld the lower courts ruling and determined the administration overreached in its authority with its blanket use of prosecutorial discretion. As a result, the administration's plan to expand Deferred Action for Childhood Arrivals (DACA) and Deferred Action for Parents of Americans and Lawful Permanent Residents (DAPA) remain stayed by the court and will require action further action by the Administration, the Supreme Court or Congress. The DACA program started in 2012 remains unaffected.

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at FreeDigitalPhotos.net

For more news and information on this ruling you can follow the links below:

"Federal appeals court deals blow to President Obama’s amnesty"  - Washington Post
http://bit.ly/1LHm0Wo

"Appeals court rules with states challenging Obama's immigration action" - Yahoo News
http://yhoo.it/1RnvOZs

"STATEMENT: U.S. Court of Appeals Denies Request to Stay Injunction Currently Blocking DAPA and Expanded DACA Implementation"
http://ampr.gs/1J12TZT

If you want to know more about Mark Medvesky or Medvesky Law Office, LLC, check out my website at www.medveskylaw.com.

#BucksCounty #Immigration #lawyer #lawyers, #MontgomeryCounty #Souderton #Law_Firm

Using a home equity loan to pay credit cards - from the pan into the fire ...

Whenever I see advertisements offering home equity loans and suggesting people use the loans to pay credit card debt, I cringe. If you are thinking about doing this, there is chance you are already in serious financial trouble. By using your home to refinance your credit card debt, you are betting your home you will be able to pay it off.  If you lose that bet, you stand a good chance of losing your home.

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Credit cards are usually unsecured debt. That means they do not place a lien against any property. Your promise to pay is the only thing the credit card company has. These are the type of debts that can easily be discharged in a Chapter 7 Bankruptcy and the debtor does not risk the loss of any property.

When you use a home equity loan to pay off the debt, you pledge your house against the new debt.

Once you complete the transaction, the bank has an interest in your home. If you fail to pay the new debt, the creditor can foreclose on your home to recover the debt. Bankruptcy under Chapter 7 will not protect you from this debt and protection under Chapter 13 may be limited.

If you are thinking about using your home to refinance your credit cards, consider carefully. Ask yourself if you are in deeper financial trouble than you have admitted or realized. Be careful you don't dig your hole any deeper.

If you are still going to consider using your house to pay down unsecure debt, this article gives you a couple other things to consider - "Using Equity in your Home to Pay Credit Card Debt…A Good Idea?" - http://bit.ly/1HW1Idh

If you want assistance, legal representation, or just want to know more about Mark Medvesky or Medvesky Law Office, LLC, check out our website at www.medveskylaw.com.

#bankruptcy #Chapter_7 #Chapter_13 #Montgomery_County #law_firm #Bucks_County #Pennsylvania

Bankruptcy Exemptions - what are they?

Many clients come in fearful they will be forced to give up everything they own in order to file bankruptcy. But that is far from the truth. In many cases consumer bankruptcy debtors can keep everything they own. The purpose of bankruptcy is to get people back on their feet ... not to leave them destitute. As a result, the law allows them to keep certain property through exemptions.


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I explain it as the law allows you to keep different "buckets" of property. The buckets will hold certain amounts of property for different types of property. For instance, the law gives you an exemption for furniture. The bucket for furniture and household goods will hold a little over $12,000 worth of household items. So we look at the value of the clients' furniture to see how much fits into that bucket. Most of the time everything fits in and they get to keep everything. The law provides buckets/exemptions for all types of property including equity in a house. It is a matter of analyzing the debtor's asset and sorting them into the buckets.

You do not lose all your property when you file bankruptcy. Exemptions help protect enough property to assist debtors get back on their feet. This is part of the protection provided through the bankruptcy laws.

If you want assistance, legal representation, or just want to know more about Mark Medvesky or Medvesky Law Office, LLC, check out our website at www.medveskylaw.com.

#bankruptcy #Chapter_7 #Chapter_13 #Montgomery_County #law_firm #Bucks_County #Pennsylvania