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31

Jan 2021

File Bankruptcy and Sleep Better

Posted by / in Blog, Weekly Posts /

People who file bankruptcy sleep better.

Ninety four percent of people surveyed said they slept better after filing bankruptcy.

That’s the result of a 2019-2020 study taken through SurveyMonkey.com of former clients who filed bankruptcy with us three or four years before.  One hundred four people participated in the survey.     

Ninety four percent sleep better after filing bankruptcy

Ninety-four percent of people report sleeping better after filing bankruptcy.

Getting good sleep is very important for good health. 

People who get enough sleep are less stressed.  And less stress helps people sleep. It works both ways.

While people discuss the financial benefits of filing bankruptcy, the enormous health benefits can be overlooked.  

We did similar survey in 2011 and got almost the same answer.

In 2011 88% said they slept better after filing bankruptcy.

Lack of sleep increases your risk of cancer and heat disease and affects your mental and physical abilities.  

Rosalind, from Leesburg, said this:  I was depressed and very stressed when I came to Mr. Weed due to my illness and with mounting medical debts. I now sleep better, my stress level is down and I feel so much better.

Here’s Contrell, of WoodbridgeMr Weed is hands down the best bankruptcy lawyer in the DMV. I sleep well at night. I thought with my income it was impossible to achieve a debt free life style again within 6 months my credit score was in the 700’s.

Next is Betsy, from Sterling: Thanks for everything.  I can sleep better now.

 

 

 

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31

Jan 2021

Forbearance Might Not Mean Deferment

Posted by / in Weekly Posts /

A Mortgage Forbearance Might Not Get You a Mortgage Deferment

A mortgage forbearance under the CARES Act is NOT the same as a deferment.

At the end of a mortgage forbearance, you are behind by the exact number of payments they allowed you to skip.  A deferment means you are not behind.

Mortgage companies are handing out forbearance agreements left and right, to allow people to skip some house payments because of the covid crisis. The mortgage company agrees in November 2020 (for example) that you don’t need to make a payment until May 2021. So far that’s a forbearance.

When May 2021 comes, they can say, ok now you are six months behind!  What?

Forbearance is not a deferment

After a six month forbearance, you are six months behind. You are behind for the payments they said you could skip.

When the mortgage company gives you a forbearance they agree they won’t pester you for a payment.  But you still owe those payments!

They Are Supposed to Work With You to Change the Forbearance into a Deferment

Back to the CARES Act.  The mortgage company cannot demand the whole six months all at once.

But the burden is on you to “make arrangements” to pay.

What kind of arrangements?

If you are still struggling financial, you can ask for a loan modification.  You can ask for lower payments, based on lower interest rate, or stretching the loan out longer. They don’t have to give you a modification, but you can ask.

A deferment means they take those six months you skipped and put them on the end of the loan.

A repayment plan might be something like this: since you skipped six months, we want double payment for the next six months.

This is all new

Since this is all new, nobody knows whether the mortgage companies will be reasonable when these mortgage forbearances run out.  Congress, when they passed the CARES Act, expected them to be reasonable. And the mortgage companies learned something from the housing crisis.   Looking back to 2007 and 2008, the mortgage companies probably hurt themselves by forcing foreclosures instead of working with people.  (Obviously, they hurt the homeowners way more than they hurt themselves.) They started to figure that out in about 2010.  So we can hope they will work with you, but there’s no guarantee.

How the Problem Pops Up in Bankruptcy

The reason that people ask for a forbearance can be the same reason they need to file bankruptcy: not enough money.

And when people file bankruptcy in the middle of a forbearance they think they are current on their mortgage–and shocked to find out they are NOT. Unless the forbearance has been turned into a deferment, those months you skipped under the forbearance are now months you are behind. So, you’re behind on the mortgage and now filing bankruptcy? The mortgage company can start to panic.

Bankruptcy Strategies

If people can wait, I suggest we hold off filing bankruptcy until the forbearance has definitely been turned into a deferment.  Or a loan mod.

If we can’t wait, you need to plan a full court press on the mortgage company as soon as the bankruptcy is filed. It’s vital to let them know you are NOT giving up the house (unless you are) that you want a deferment or a loan mod, and that you’re glad to send them whatever papers they need to approve you.

It is vitally important to stay in touch.

 

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24

Jan 2021

We’re Zooming Virtual Bankruptcy Consultations

Posted by / in Blog, Virginia Bankruptcy, Weekly Posts /

We’re Zooming Virtual Bankruptcy Consultations

We’ve been Zooming–doing virtual bankruptcy consultations–since April 2020. We’ll continue through 2021.

We stopped in-office consultations with the March 2020 pandemic lock down.  (I first heard of Zoom when my church started using it. We’re a small congregation and can see everybody on screen.) 

Since April 2020 I’ve Zoomed bankruptcy consultations probably five hundred times.

There are three advantages I’ve seen in doing virtual bankruptcy consultations.

First, it saves travel time.  The pandemic is still raging.  But the traffic in Northern Virginia is as bad as it’s ever been. It takes too long to get anywhere.

Second, people are more comfortable.  Especially on the initial contact–what I call the Quick Call–it works out well. I’m at my own computer, where I can access all my info. And you are at home–or wherever–more comfortable and maybe more open than you’d be in an unfamiliar office.

I didn’t expect that. But I often feel we cover more ground and clear up more concerns with a virtual consultation.

Bankruptcy consultation on Zoom

I’m at my own computer, where I can access my info. And you are at home more relaxed than you’d be at a meeting in an unfamiliar office.

Third, safety is most important. Sitting across the desk with the same person for an hour, passing papers back and forth, that’s a risk we don’t need to take.

Alexandria Bankruptcy hearings are telephonic.

Hearings at the bankruptcy courts are virtual, zoom and telephonic–until 60 days after the President declares an end to the emergency.  We’ll keep Zooming at least through the end of 2021.

Documents can be a problem.

After our quick call, I invite you to fill in my Be Happy form.  That’s here on my website.  Then we’ll send you a password and links to upload the required documents. Transferring documents can be the hardest part of the virtual consultation.

You likely already have some of the documents in pdf.  You can take a photo on your phone for the required ID.  Having access to a scanner can be helpful.  Usually we can find a convenient solution.

 

 

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NORTHERN VIRGINIA BANKRUPTCY LAW OFFICES