San Antonio bankruptcy courts may be an alternative to your debt situation.
In June and July of 2009, a large number of home loans that were made with adjustable rate mortages will be resetting to new interest rates. Many of these loans were made with terms that will result in a substantial increase in the interest rates as well as an increase in payments.
People are facing obstacles in their lives never before confronted. Loss of job, loss of income, investment loss from the Wall Street debacle have reduced cash flow for many. Some, feeling that things would improve, have borrowed to finance their living expenses. Others have borrowed to finance a business that they did not realize was failing and could not recover.
There is relief. If you are a wage earner, you may qualify for a Chapter 13 bankruptcy which is a reorganization that allow you to pay your debts over a period time in some cases.
Chapter 7 is a complete liquidation where there are no significant assets from which collection can be made. The debtor gets a complete discharge from the debts. Creditors share in any recovery from non-exempt assets but normally there are few assets as most Chapter 7 bankruptcies are “no asset” cases.
Chapter 13 is the “wage earner” bankruptcy. Secured creditors are paid 100% and unsecured creditors are paid through a three to five year payout. The debtor pays a fixed amount to the US Trustee for the time period and the unsecured creditors receive one to three percent of the value of their claims.
Chapter 11 is a business reorganization and is normally for corporations. A plan is confirmed by the Court which determines the level of the payout.
Most individuals will file either a Chapter 7 or a Chapter 13 bankruptcy. San Antonio Bankruptcy
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James (Jim) Montgomery, recognized as a Texas SuperLawyer, explores how bankruptcy and chapter 13 plans can result in paying off credit card debt through debt settlement negotiation in his blog. His paper, "3 Ways To Stop Creditors In Their Tracks can be downloaded for free.