Calculate the bankruptcy payments in order to avoid payment problems
In general people file bankruptcy under two chapters and these are Chapter 7 and Chapter 13. In case of Chapter 7 bankruptcy, you are required to handover all of your assets to the bankruptcy trustee. They analyze your debt amount and then sell off the assets to pay the creditors and lenders. However, in case of Chapter 13 bankruptcy, you are required to make the debt payments through a reorganization plan ascertained by the court. Thus, in this case you can retain your assets. Thus, it becomes important for you to calculate the payments through a useful mortgage calculator. In the same way, you can use Chapter 13 bankruptcy calculator.
Calculating the bankruptcy payments
The bankruptcy proceedings under Chapter 13 bankruptcy involve helping out the debtor so as to allow him/her to pay off debts using future earnings. Thus, in case of Chapter 13 bankruptcy you do not lose your assets. Rather the bankruptcy trustee is appointed to check your assets. The bankruptcy proceedings can be entered by you as a debtor or can also be initiated by the creditors. After the bankruptcy is filed, the creditors cannot seek to collect the debts directly from you, outside the process of distribution by the bankruptcy trustee. You cannot even sell off or gift your assets and property to anyone which has been declared as part of your bankruptcy estate.
So, how can you calculate the payments that you will be required to make to the creditors under Chapter 13 bankruptcy? Now, in order to calculate the payments, you need to first understand that there are three main types of creditors to whom you owe the debts. So, the three main types of creditors are the unsecured, secured and the post creditors. Moreover, the post creditors and the secured creditors are not considered in the payment calculations in case of Chapter 13 bankruptcy.
Now, in order to calculate the monthly bankruptcy payments under Chapter 13 bankruptcy, you will have to make a list of the estimated monthly expenditure. This will include the utilities and tuition payments, the tax and food payments, payments on other necessities, mortgage, car loan and other debt payments. However, expenditures on entertainment, vacations and other such expenses are not considered. In addition, you will have to calculate the regular monthly income coming from all kinds of sources.
After that, you will have to subtract all of the necessary expenses from regular monthly income (gross) to get some idea on the cash figure. Like, if you have a stable monthly income; let us take around $3,000 and if the secured creditor payments amounts to $2,600 then around $400 will be available for the unsecured debt payments. This is considered to be the key calculation in case of bankruptcy payments.
Now, if your affordability rises, you can talk to the court and the trustee. They may analyze the situation and help you in increasing the amount that you are required to pay each month to the creditors under the bankruptcy program.
Other than calculating the payments on your own, you can also use a bankruptcy calculator. Just like a mortgage calculator, you will easily be able to find a bankruptcy calculator with various websites. You can use such calculators to calculate the monthly payment that you will be required to make under the Chapter 13 repayment plan.
So, you can see that in both ways you can calculate the payments that you will be required to make to the creditors under bankruptcy. This is going to help you in maintaining the payments and get out of the bankruptcy early enough.
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2011 Year End Tax Deductions, Credits, and Planning Tips
As the year draws to a close, it’s time to squeeze in some tax deductions and credits that might save you money. If you are looking to reduce your tax liability, here are some 2011 year end tax planning tips or options you may want to consider READ MORE
Here we go again.
The market is struggling to gain stability as market swings are the norm as of late. Mortgage bonds are now falling back off pushing rates higher.
Mortgage bond prices opened weaker this morning erasing the gains from yesterday afternoon but have recovered a bit near pricing to keep things in check.
Global equities brushed aside the Greek turmoil and posted gains overnight. US stock are higher with the DOW up over 40 points.
To repeat…. the roller coaster ride continues.
The data this morning was mixed. Factory orders up 0.3%, expected down 0.1%. Weekly jobless claims @ 397k, expected @ 400k, not rate friendly, Productivity up 3.1%, expected up 2.8%.
Yesterday the Fed made no rate changes and indicated:
-Growth strengthened somewhat in Q3
-Vote was 9-1, Evans wanted additional policy accomodation
-Household spending increased
-Signs point to continued weakness in labor market, elevated unemployment
-REPEATS significant downside risk to economic growth, notes strains from GLOBAL financial markets
-Inflation moderated
-Repeats the conditions likely warrant exceptionally low Fed Funds Rate at least through mid 2013
-Expects inflation to settle in coming quarters
-Will continue to reinvest principal payments of mortgage debt back into mortgage-backed securities
We still have the EMPLOYMENT REPORT FRIDAY.
YO-YO Market
Mortgage bond prices closed slightly below the levels where daily pricing was set applying upward pressure to mortgage rates. Trade was volatile all day tied to the movement in stocks. Equity and bond prices were yo-yoing with each snippet of news out of Europe. Tomorrow brings weekly jobless claims and Q3 advanced GDP before lenders set pricing. Prepare yourself and your borrowers for a wild ride. Regardless of what happens in Europe stocks and bonds will most likely be EXTREMELY volatile.
REFINANCE UPDATE if your home is under water
This morning, FHFA announced their enhancements to the HARP refinancing program. Operational details of the plan are to be released on November 15. Only loans that were purchased or guaranteed by Fannie Mae or Freddie Mac on or before May 31, 2009 and have a current LTV over 80% are eligible. In addition, the loan must be current, no late payments in the last six months and no more than one late in the last 12 months. There are no restrictions on who may refinance these loans.
Program guidelines include:
- No limit on LTV, if new loan is a fixed rate loan (current LTV must be above 80%)
- Loans previously refinanced under HARP not allowed
- Certain agency fees will be waived if new loan is a shorter term loan
- Appraisals not required where Agency AVM is available
- Certain originator Reps and Warrants will be waived
Borrowers can determine if their loan is owned or guaranteed by Fannie or Freddie at http://www.fanniemae.com/loanlookup/ or http://www.freddiemac.com/corporate/
GADHAFI DEAD?
The head of the National Transitional Council military arm announced on Al Jazeera Arabic that Gadhafi is dead. The report hasn’t been confirmed.
Mortgage bonds are weaker at the open pushing rates higher as news out of Europe indicates the euro zone’s bailout facility will be able to buy EU bonds on the secondary market. The US debt market was weaker heading into the jobs data and didn’t move move following it.
Stock futures are higher adding addition pressure to mortgage bonds. The flight to quality buying of US debt instruments continues to fluxuate as hopes of a European debt solution increase. AS WE CONTINUE TO STATE….the trouble in Europe is far from over and we have been on this roller coaster for some time so expected more volatility to come!!!
Weekly jobless claims @ 403k, expected @ 400k, relatively in line with expectations
Buy the Ticket. Take the Ride.
Volatility dominated the capital markets today as Stock and Bonds flip flopped between negative and positive several times each with Stocks emerging as the winner when the trading day ended.
Fed Chairman Bernanke spoke on Capitol Hill today on the economy and said that the Fed would take necessary steps to grow the economy. The Dow was down 250 points at one point, then traded back to unchanged, then down 200 before closing up 150 points. Mortgage Bonds traded the opposite way of Stocks during the session but at one point Stocks and Bonds were both trading lower. But around 2:30 – 3:00pm ET, a report that EU finance ministers are looking at ways of coordinating to recapitalize European financial institutions pushed Stocks well into positive territory near the close.
Sell off.
Investors sold Bonds today and took some profits after the big surge in prices this week. Markets don’t go straight up or straight down so the move lower today wasn’t a big surprise and came without any gloom and doom headlines.
The 3.5% coupon fell 88bp to end at 102.78. Stock markets fluctuated between positive and negative several times during the session and ended with moderate gains but the Dow had its worst week since October 2008 down 6.4%…closing at 10,771.48 up 37.65. The S&P 500 fell 6.5% this week but managed to gain 6.87 to 1,136.43 while the Nasdaq was up 27.56 to 2,483.23 but down 5.3% for the week. The big news today was the record one day move for Gold as it had lost $100 to $1,641/oz before finishing at $1,653/oz down $88. Oil settled at $79.85/barrel down 66 cents falling 9.2% for the week. Next week economic data is plentiful and will give investors a broad look at the economy.








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