Bankruptcy During a Pandemic in New Hampshire

Need help financially? No one wants to file Bankruptcy. Sometimes it is the only way to get your finances in check. The law is there for a reason. 

 

It can help relieve some of if not all debt. If needing to speak with someone about possibly filing for bankruptcy, give me a call today for a free consultation!

https://www.bankruptcylawyernh.com/contact.html.

 

 

Attorney Christopher W. Kelley

Attorney Kelley is a lawyer who takes the time to listen to his clients so that he may provide the service and results each client needs and deserves. If you are currently seeking an attorney who listens and cares about your situation, he would be happy to meet with you to discuss your matter. Attorney Kelley's practice is focused on assisting clients through the bankruptcy process and personal injury matters.

How To Stop a Home Foreclosure in New Hampshire

Home Foreclosures in NH - How To Avoid It

Homeowners who are behind on their mortgage payments may be worried about the prospect of being in foreclosure. This is a thought that can be scary and overwhelming for any homeowner.  Individuals who are facing financial difficulty may be having difficulty staying current with their mortgage payments. If this is an issue you are facing, then this article is for you.

Homeowners may not realize that there are proactive steps they can take to prevent their home from going into foreclosure.  With the stress of an approaching foreclosure sale, homeowners all too often wait to call an experienced bankruptcy attorney to understand all of the options available to them to save their home. The sooner you call, the sooner you can explore all of your options, including possibly not having to file a bankruptcy to save your home.

Saving Your Home

Knowledge is the best way for a homeowner to learn how to stop a foreclosure. The first thing that any concerned homeowner should do is consult with an attorney experience with the foreclosure process and the bankruptcy process. There are various programs for a homeowner to consider when facing foreclosure. However, these options need to be explored well before a scheduled foreclosure sale date to take advantage of them. 

The most important thing a homeowner needs to know is their rights, and the timeline of the foreclosure process in New Hampshire.   Most foreclosures in New Hampshire are non-judicial, which means the bank does not need to commence a court case to complete the foreclosure process.  We will take the time to listen to your current situation and provide you with all of the options available to you. Our goal is to allow our clients to be able to make an informed decision as to how best handle a threatened loss of their home through a foreclosure. 

Available Options

A homeowner may have several options available for stopping a foreclosure. First, the bank may allow a period of forbearance where you do not need to make payments for a limited period of time due to illness or loss of income. Second, a homeowner may seek a loan modification from the bank, which may allow you to take your missed payments and re-capitalize them into the loan and resume making your regular monthly payment or a reduced monthly payment if the mortgage is able to be modified with an interest rate reduction or extension of the term of the mortgage.

Is Bankruptcy an Option?

A homeowner may choose to file a bankruptcy to either cancel or postpone a foreclosure sale. To cancel the foreclosure, a homeowner can file a Chapter 13 bankruptcy, which will give the homeowner up to five years to pay back the missed mortgage payments, while the homeowner makes the future mortgage payments on time. If a homeowner merely wants more time to move out of their home, they can file a Chapter 7 bankruptcy to delay the foreclosure sale and give the homeowner time to organize their affairs.

If your home is in danger of foreclosure and you are in need of more information about the foreclosure process and all of the options available to you in New Hampshire, then a bankruptcy attorney is a good place to start. Call us today to discuss your situation regarding your home.  



By Christopher Kelley


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What Do I Need To Bring To a Bankruptcy Appointment in NH?

What You Need to Know and Need to Bring With You When Filing for Bankruptcy

No one ever dreams of filing for bankruptcy. However, there are many hard-working and responsible people in New Hampshire who have been faced with filing for bankruptcy just to get the fresh financial start they need. Most bankruptcies are filed because of unemployment, divorce, or simply wages not keeping up with ever increasing living expenses. If you are faced with the possibility of filing for bankruptcy, there are certain facts you need to know and certain items you will have to gather just to start the process.

Types of Bankruptcy

First, you will need to decide which type of bankruptcy best suits your situation. The two most common types of bankruptcies in New Hampshire are Chapter 7 and Chapter 13.  In a Chapter 7 bankruptcy, you typically do not pay back any of your unsecured creditors, you retain your home and cars if you so desire, and you obtain a fresh start upon being granted a Chapter 7 discharge.   You typically keep all of your assets in a Chapter 7 bankruptcy by using exemptions to protect your property.  In order to file a Chapter 7 bankruptcy, you must meet an income test, which is called a “means test”. 

If a debtor does not meet the “means test” under Chapter 7, he or she must file a Chapter 13 bankruptcy, where typically a portion of the unsecured debt is paid back through the bankruptcy estate. Another common reason to file a Chapter 13 bankruptcy is to have time to get caught up on missed mortgage payments in order to save your home.  A Chapter 13 plan is  typically a repayment period of three to five years.

Checklist

When you decide it is time to seek help from a bankruptcy attorney, it is helpful if you can start gathering your financial documents together. Following your initial consultation with Attorney Kelley, he will provide you with a checklist of items you will need to gather in order for Attorney to complete your bankruptcy schedules. You should bring any paperwork regarding a pending foreclosure, eviction, or repossession of assets. Also, if you pay child support or alimony, having that agreement on hand is useful.

Bankruptcy is Designed to Help People

Bankruptcy is often shrouded in myth and misinformation. It can also be a fearful option, particularly for people who have worked hard and who have tried to keep their heads above water. But, when that struggle is too much, bankruptcy can be the best option. It can help families stay in their homes and save individuals from losing everything they have worked for. An experienced and compassionate bankruptcy attorney can help explain the details and how filing for bankruptcy will impact your debt and your financial life in general.

By Christopher Kelley

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6 Steps to Build Up Your Credit Score

Nobody is perfect. For some of us, our credit score is a prime example of that fact. Over time, bad financial decisions will negatively impact your credit score. It may seem like there is nothing you can do to fix the problem, but don’t worry—you can take steps to improve your credit score and many of them don’t even require you to leave the comfort of your home!

Your credit score affects various important aspects of life. A low score can mean higher interest rates and denial of loans or credit. Check out these 6 simple steps on how to build up your credit score.

1.    Check your credit report for accuracy. In this age of cyber crimes, identity theft is more common than you think. The firs step to build up your credit score is checking your credit report for fraudulent accounts. If you come across any inaccuracies, you can contact the credit report agency directly to dispute an account. The process can be a bit time consuming, but it will do a lot of good. You don’t want to pay for someone else’s crime, so it is imperative that you monitor your credit report periodically to prevent a lower credit score than you deserve. Once you find out your credit score, you can begin working towards improving it.

2.    Get a secured credit card. Secured credit cards are meant to help people with low credit scores to build up their credit. A secured credit card is backed by cash. Like a debit card, you can only spend the amount you have in the account. Every secured credit card is different and not all banks offer this option, so be sure to do your research.

3.    Pay down debt. Paying down some of your past credit card debt is a great way to start improving your credit score. This will help you to decrease your usage, giving you a lower debt-to-credit ration. That is an easy way to help boost your credit score. Don’t let your past missed payments prevent you from owning a home. Paying down your credit card debt is a great way to start building up your credit score. If you are in serious debt and face foreclosure, you should consult with an experienced bankruptcy attorney to see what your options are. Often filing bankruptcy can actually improve your score.

4.    Try to maintain a low account age. Keeping your total number of accounts as low as possible is a good practice. If you have too many accounts open at the same time, then your overall account age will be lower. Maintaining only a few accounts (in good standing) is a much better way to improve your score.

5.    Operate within your credit limit. This means opening only the amount of credit cards you can handle while still paying all of your bills on time. One missed payment can become a slippery slope. If you pay all of your cards and loans on time, you can start to build up your credit score. Try not to buy something unless you know you can afford it. If you can manage to spend under 30% of your overall credit limit, your score is bound to get better.

6.    Never take out a cash advance! Beware of cash advances and payday loans. These programs target low-income families and give the company long-term access to your bank account. A payday loan will negatively affect your score and you could be stuck with a 25% interest rate, forcing you deeper and deeper into debt. Cash advances will give you a false sense of financial security and ultimately cause your credit score to get worse.

If you want to build up your credit score, these 6 simple steps will put you on the path to doing so. Building your credit score successfully takes time, but it is well worth the work. Remember—any company that claims to be able to raise your credit score in a very short period of time is false advertising.

If you feel that you have been a victim of predatory lending, contact us for a free and confidential consultation with one of our experienced attorneys. We can work to help you rebuild your credit score and get back on the right financial path.

By Christopher Kelley

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Credit Card Debt FAQs - Bankruptcy Lawyer For New Hampshire

Credit Card Debt FAQs

Last year, the average household credit card debt was more than $15,000. That means that consumers in the United States owe over $11 trillion. Needless to say, more and more people are looking for answers on how to deal with mounting credit card debt. In New Hampshire, there is a statute of limitations for how long a collection agency has to contact you regarding a debt.

These frequently asked questions should help you get started.

Q: When paying off my credit card debt, is it OK to pay only the minimum monthly amount?

A: Unlike a lot of other debt, credit card interest can actually increase over time. Paying the minimum payments each month may trap you further in debt depending on the type of card. While you may be able to transfer a balance on a high interest rate card to a lower interest rate card, you need to be aware that the introductory rate will likely increase at some point in time. If you are considering filing for bankruptcy, you should not perform any balance transfers. 

Q: Which credit card should I try to pay off first?

A: This will depend on your goals and what types of debt you have as well as the interest rates on your current cards. After you have paid the minimum required monthly payments for your various loans, credit cards, or mortgage, any extra money should be applied to one specific card. Choose the card that has the highest interest rate for the best results.

Q: Can I open a new line of credit to pay off an old credit card?

A: This is very risky. There is no guarantee that it will be worth it since your new card will also have an interest rate that could rise over time. If you are considering this as an option, it is probably best to look into your options in bankruptcy.

Q: I saw/heard a commercial about 24-hour debt elimination, will that work?

A: These types of predatory advertisements are usually fraudulent. Eliminating any type of debt takes time. You can weed out the scams because they generally brag about a quick fix and ask for money up front without considering the specifics of your needs. You don’t have to pay someone to get you out of debt quickly. More times than not, you’d be better off using that same money to just pay down your debt or hire an attorney. Steer clear of companies that claim they can eliminate years' worth of debt in a few hours or days.

Q: Can hiring a credit card debt settlement company affect my credit score?

A: Like bankruptcy, debt settlement can potentially hurt your credit score if you go through a debt settlement company. Some of these debt settlement companies advise you to skip payments or attempt some sneaky maneuver to avoid your debt. This will only make your situation worse. It is important to find a reputable company.

Q: Can I use a secured credit card to improve my credit?

A: Secured credit cards can be a good way to start rebuilding your credit. Unlike a traditional credit card, secured credit cards require money to be deposited for collateral. For many people with bad credit or a lack of credit history, this can be a good option for improving your credit score.

Q: What should I do if I am being harassed by collection agencies?

A: If you are being harassed by a collection agency, take note of when and how many times you have been called as well as what number they are calling from each time and the time of day. If possible, get the representative’s name. The FDCPA (Fair Debt Collection Protection Act) is meant to protect the rights of Americans. It specifies how and when a collection agency or creditor can get in contact with you.

Credit card debt is easy to get into, but difficult to get rid of. Stay informed of your rights and responsibilities. If you still have questions, or would like more information on credit card debt in New Hampshire, contact a qualified bankruptcy attorney.

By Bankruptcy Attorney Kelley


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5 Steps To Stop Foreclosure in New Hampshire

There are few pieces of mail more daunting than a foreclosure letter. Getting a notice of possible foreclosure can be scary, but there are steps homeowners can take to relieve the stress of a foreclosure in New Hampshire. Although you may be struggling to make your monthly mortgage payments, you do have options.

In New Hampshire, the process to stop foreclosure can be relatively fast. Be sure to do your research and find out your options before you allow a lender to foreclose on your home. If you are at risk of losing your home, follow these 6 simple steps.

1. Get in touch with a housing counselor or attorney immediately. A housing counselor or attorney can give homeowners specific, personalized advice to help stop foreclosure. A housing counselor can evaluate your needs and point you to some helpful resources. The best way to utilize a homeowner’s skills is to be open about your situation. Make sure that you answer questions honestly and let your expectations and limitations be known up front to avoid any confusion.

2. Prepare a hardship letter. A hardship letter gives the ender an overview of your circumstances. Although a letter alone will not be enough to stop a foreclosure, it can be a good start. Your housing counselor can help you draft a hardship letter to present to your lender in conjunction with other documentation. The letter will be a detailed account of the circumstances that led up to your current situation as well as what you are asking for specifically in order to get caught up on your payments. Remember, it is best to work wit your housing counselor or a foreclosure attorney to develop a strong hardship letter.

3. When at all possible, try to contact your lender to explain your situation. Reaching out to the lender shows that you are making a good faith effort to pay. This is also a good idea because it immediately alerts the company to your circumstances so they can start to work with you. Contacting the lender can be the first step to successfully stopping a foreclosure in New Hampshire. Most lenders are more interested in letting you keep your home than moving forward with foreclosure procedures. What many homeowners don’t realize is that a foreclosure can cost the lender upwards of $20,000, not to mention the time and trouble of going through the process. This is especially a good idea for those who have a temporary financial burden such as being let go from work or an unplanned medical expense.

4. Get the amortization period extended. If you can do this, it means that the life of your loan is longer which can result in lower minimum payments each month. For many homeowners in New Hampshire, this is an alternative that will save their home.

5. Inquire about forbearance. Forbearance is similar to deferring your student loan repayment until after graduation. You can have the option of making partial payments or no payments during an agreed upon period of time. You will still be responsible for the entire loan amount, but forbearance can help prevent foreclosure on your home. The terms of each forbearance agreement will depend on the details negotiated with your lender.

6. Attend a New Hampshire HUD foreclosure workshop. The state of New Hampshire has options and resources for homeowners who may be facing foreclosure. The Foreclosure Prevention Initiative is a great place to get started. This program was started in 2012 to help homeowners who may be at risk of foreclosure.


Foreclosure may allow your mortgage lender to seize your property, but you can stop foreclosure with these steps. Understanding your rights and responsibilities concerning a possible foreclosure can make a hue difference. Saving your family’s home is worth it.

If you have already received a foreclosure notice, you should take steps to address to your situation immediately. Find a qualified bankruptcy attorney in your area for a office for a free, confidential consultation. You don’t have to deal with this on your own.

By Bankruptcy Attorney Christopher W. Kelley


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5 Ways Bankruptcy Might Affect Your Credit - It’s Not What You Think

Bankruptcy And Your Credit Score- FAQ's

When thinking of filing for bankruptcy, you might have several questions particularly concerning your credit score. Are you wondering how it will affect your credit score, or for how long you’ll have to ‘suffer’ the effects of having bankruptcy noted on your credit history? There are some surprising answers to these questions.

How will bankruptcy affect my credit score?

After filing for Chapter 7 or Chapter 13 bankruptcy, many individuals are perturbed about the effects of bankruptcy on their credit scores. The severity of damage that bankruptcy will do is dependent upon on your credit reports prior to bankruptcy. If you had a relatively good credit report initially, bankruptcy may cause a huge hit with your credit reports.

If you have a high ratio of debt-to-asset then your credit will not be affected greatly. If you plan to file for bankruptcy with more debts and less assets, your credit score will only be moderately affected.  It is always best to consult the advice of a professional to make sure that you should file for bankruptcy. For bankruptcy statistical data in your area visit U.S. Bankruptcy Courts Site.

Can bankruptcy increase my credit scores?

Don’t go by the popular myths of bankruptcy automatically leading to a terrible credit score.  Why?
There are many cases where people saw an increase in credit scores! In fact, many people recover in a range of 12-24 months following their release.

You can always make up for your credit scores by paying and clearing all your debts within a proper time frame. The credit companies will check your payment history, outstanding debts, and credit history while calculating the scores. After getting released from bankruptcy try to sort out as many debts as possible.

It is important that you organize your debts, make sure you don’t fall under these common misconceptions:
●    50% of individuals believe that bankruptcy excuses you from paying off credit card debt.
●    Furthermore,     38% of individuals believe that creditors will be just as likely to work with you after you have filed for bankruptcy.

Make sure that you do not fall under these false beliefs, as it could lead to a bad decision!

Resources:  Credit Card Debt Calculator

Which bankruptcy is better for my credit score?

There are two types of bankruptcies: Chapter 7 and chapter 13. It is important to know that both Chapter 7 and Chapter 13 bankruptcies have the same exact effect towards the calculation of your credit score.

There are some special cases in which creditors may favor one bankruptcy type over the other. For instance, a potential creditor might feel that an individual clearing all his debts in 7 years under a chapter 13 bankruptcy is more dependable than the one who has filed a chapter 7 bankruptcy.

How long will bankruptcy appear in my credit reports?

If you have filed for a Chapter 7 or 13 bankruptcy then it might appear in your credit reports for a period of 10 years. Again, if you opt for a loan which is greater than $150,000 or a job which has a salary of $75,000 or more, then the credit companies can extend bankruptcy more than 10 years on your credit reports.

How is your credit score, calculated when you file bankruptcy?

When you file for bankruptcy, your credit score, it is calculated by comparing your credit report with other reports of prospective individuals. There are individuals who have high, middle, and low credit scores after bankruptcy. However, increasing that credit score to 700 by managing your payments and debts is very possible with patience and persistence.

By Christopher W. Kelley



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