Foreclosure Prevention Video #6
Bankruptcy Protection and Credit Reporting
Hi, I’m Nevada Loss Mitigation Specialist Damian Falcone and this is part 6 of the loss mitigation foreclosure prevention video series. In part 5 we went through some of the comparisons you can make in evaluating your situation and today we will be going over some legal situations you should consider.
Today we will be covering the subjects of Bankruptcy Protection and Credit Reporting. We go through each of these subjects in more detail in their respective series and we recommend you watch them if you haven’t already – These will be some quick points to help you understand some possible outcomes of your loss mitigation plan.
Bankruptcy protection is for consumers that have debts or deficiency judgments they cannot afford to pay. The simplest type of Bankruptcy Protection can normally be completed by a reputable licensed attorney in about 6 months usually at a cost starting at around $1500 depending on the complexity of the case.
Each option we have discussed in this series and the previous ones have credit reporting consequences. Most consumers fail to realize that a credit score is like a photograph - a snapshot in time. We suggest thinking of credit as 2 types: Credit worthy and not Credit worthy (FYI a 730 credit score while being upside down on your assets $200,000 is not credit worthy). Either way, you need to evaluate the time it will take to build positive credit and how long it will take to get your debt down to a responsible level. Just about anyone can get a secured loan, credit card or line of credit but even before that plenty of people need to get out from under a mountain of debt. For some, paying off debts over the course of 6 months or a year may be the best thing to do - for others filing for Bankruptcy protection as soon as possible is best because it can provide a fresh start and the ability to start building positive credit sooner.
These have been the essential components for forming your loss mitigation plan.
I’m loss mitigation specialist Damian Falcone and this is Get Modified!