Comments on: How do you get out of a financial hole? http://businessbankruptcylaws.org/how-do-you-get-out-of-a-financial-hole/ Help For Small Business Owners Considering Bankruptcy Sun, 15 Jan 2012 00:01:18 -0600 http://wordpress.org/?v=2.8.3 hourly 1 By: matthewdpierce http://businessbankruptcylaws.org/how-do-you-get-out-of-a-financial-hole/comment-page-1/#comment-2109 matthewdpierce Wed, 20 Jan 2010 12:00:37 +0000 http://businessbankruptcylaws.org/how-do-you-get-out-of-a-financial-hole/#comment-2109 Leins can be removed if you can settle the debt. Nobody really wants to take your house because it creates more work for them to get their money. They would much rather get their money, remove the lein and carry on. I would beg, borrow or sell things to get the lein removed from your house. Once you have done that, if you have any equity in your home at all, get a home equity loan to pay off all other debt. There's no point in paying interest on any other loan when all home equity loan interest is tax deductable. You can also refinance if that will help your monthly cashflow. If you're not getting at least 2% better interest on the re-fi, it might not be worthwhile. There are free financial advice services in most metropolitan areas. You might talk to a debt consolidation company and see what assets you can leverage to get out of the hole. For example, you can borrow against your 401k (so you're actually borrowing money against yourself and paying yourself back plus interest) or even take a draw against it for a primary residence. Without know your specific debts and income, it's hard to say specifically what you should do. There are usually ways out of a hole but sometimes the road to recovery is a little painful. Best of luck. Remember it's always darkest before the dawn! Leins can be removed if you can settle the debt. Nobody really wants to take your house because it creates more work for them to get their money. They would much rather get their money, remove the lein and carry on.

I would beg, borrow or sell things to get the lein removed from your house. Once you have done that, if you have any equity in your home at all, get a home equity loan to pay off all other debt. There’s no point in paying interest on any other loan when all home equity loan interest is tax deductable. You can also refinance if that will help your monthly cashflow. If you’re not getting at least 2% better interest on the re-fi, it might not be worthwhile.

There are free financial advice services in most metropolitan areas. You might talk to a debt consolidation company and see what assets you can leverage to get out of the hole. For example, you can borrow against your 401k (so you’re actually borrowing money against yourself and paying yourself back plus interest) or even take a draw against it for a primary residence.

Without know your specific debts and income, it’s hard to say specifically what you should do. There are usually ways out of a hole but sometimes the road to recovery is a little painful.

Best of luck. Remember it’s always darkest before the dawn!

]]> By: k m http://businessbankruptcylaws.org/how-do-you-get-out-of-a-financial-hole/comment-page-1/#comment-2108 k m Wed, 20 Jan 2010 12:00:37 +0000 http://businessbankruptcylaws.org/how-do-you-get-out-of-a-financial-hole/#comment-2108 Sell the house fast and pay off the mortgage so you don't lose your credit entirely. You can't keep it and by cutting your losses you may just break even. You may need to work more than one job for a few years, or you may need to get a better-paying job. Your primary need right now is to take at least one step a day that will bring you toward solvency. Cut up the credit cards- save one for emergency only and call the ocmpany and reduce the limit to $1000 so you won't be tempted. Resign yourself to no new clothes. If your car is crap- sell it and move to a place where you can walk or bus to most things. You should stop buying coffee and lunches, and brown bag and bring a travel cup. If you smoke- quit. You would be amazed how much small economies add up- if you put all those savings in a jar, you'd see them pile up quickly. It may seem stupid and petty to put in small economies, but look at it this way- NO ONE else is coming to your rescue. You- and your ex- dug yourself into this hole and only you can dig out. To be fair- you chose not to pay your mortgage on time, and that violated the agreement you had with the bank. It doesn't matter what your excuse or explanation is- they have the right to foreclose. Sell and downsize fast and you may be able to dig yourself out. Don't and you'll be on the street with all your stuff. You can get ahead. I have seen people do it. You have to be dogged and determined and not stop ever. Good luck. Or better yet- good behaviour! Sell the house fast and pay off the mortgage so you don’t lose your credit entirely.
You can’t keep it and by cutting your losses you may just break even.
You may need to work more than one job for a few years, or you may need to get a better-paying job. Your primary need right now is to take at least one step a day that will bring you toward solvency.
Cut up the credit cards- save one for emergency only and call the ocmpany and reduce the limit to $1000 so you won’t be tempted.
Resign yourself to no new clothes. If your car is crap- sell it and move to a place where you can walk or bus to most things.
You should stop buying coffee and lunches, and brown bag and bring a travel cup. If you smoke- quit. You would be amazed how much small economies add up- if you put all those savings in a jar, you’d see them pile up quickly.
It may seem stupid and petty to put in small economies, but look at it this way- NO ONE else is coming to your rescue. You- and your ex- dug yourself into this hole and only you can dig out. To be fair- you chose not to pay your mortgage on time, and that violated the agreement you had with the bank. It doesn’t matter what your excuse or explanation is- they have the right to foreclose. Sell and downsize fast and you may be able to dig yourself out. Don’t and you’ll be on the street with all your stuff.
You can get ahead. I have seen people do it. You have to be dogged and determined and not stop ever.
Good luck. Or better yet- good behaviour!

]]> By: kent c http://businessbankruptcylaws.org/how-do-you-get-out-of-a-financial-hole/comment-page-1/#comment-2107 kent c Wed, 20 Jan 2010 12:00:37 +0000 http://businessbankruptcylaws.org/how-do-you-get-out-of-a-financial-hole/#comment-2107 I wish i can give advised here. Take a look at your budget and your income. Balance it out. Do part time job to repay your debt. Work out a system for yourself. How much you earned and how much you have to pay back. And doing that, you will know the balance you have left every month. From here, you can work your way thru but it will be tough. I wish i can give advised here. Take a look at your budget and your income. Balance it out. Do part time job to repay your debt. Work out a system for yourself. How much you earned and how much you have to pay back. And doing that, you will know the balance you have left every month. From here, you can work your way thru but it will be tough.

]]> By: mytwodogs60463 http://businessbankruptcylaws.org/how-do-you-get-out-of-a-financial-hole/comment-page-1/#comment-2106 mytwodogs60463 Wed, 20 Jan 2010 12:00:37 +0000 http://businessbankruptcylaws.org/how-do-you-get-out-of-a-financial-hole/#comment-2106 if you've been in your house a long time you can get money out of your home. you can borrow on your home as the value increases over time that you've been there. if you’ve been in your house a long time you can get money out of your home. you can borrow on your home as the value increases over time that you’ve been there.

]]> By: nope n http://businessbankruptcylaws.org/how-do-you-get-out-of-a-financial-hole/comment-page-1/#comment-2105 nope n Wed, 20 Jan 2010 12:00:37 +0000 http://businessbankruptcylaws.org/how-do-you-get-out-of-a-financial-hole/#comment-2105 "How do you get ahead when you can't get a break??" If you figure that one out, please share. "How do you get ahead when you can’t get a break??"

If you figure that one out, please share.

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