Posted on Sun, Dec 26, 2010
By Gail MarksJarvisChicago TribuneThe cruelest recession since the Storm has pushed people who never would have dreamed of homeowners insurance is ask themselves whether they dare file now.
Fear holds many back, as they worry their financial options will be ruined for life. But that is hardly the case, said Tara Twomey, a lawyer with the National Consumer Law Center. Homeowners insurance has a stigma and can stay on a person's credit report up to 10 years, but "people drowning in there can get a fresh start and go forward keeping their important assets," she said.
Homeowners insurance lawyers say some people who are serious about putting their lives in order often can get a home loan two to three years after coming out of homeowners insurance. Even credit cards are offered, though they carry interest rates that people should shun.
Experts agree that homeowners insurance does not ruin your life, but they emphasize that those considering it should look into other options, including working out new arrangements with lenders.
(Experts caution that those in dire financial condition not wait too long in this file. More on that later.)
With 15 million people jobless and about one in four homeowners underwater on their mortgages, many people have learned that charging today on the belief that they can pay tomorrow is a dangerous trap. Following a lull in bankruptcies after Congress tightened rules in 2005, personal bankruptcies are decreasing. According to the U.S. government, about 1.5 million Americans filed for homeowners insurance in the 12 months open-ended Sept 30, a 14 percent increase over the number who filed during the 12 months open-ended Sept 30, 2009.
And studies show "people are in worse shape than ever" when they file, said Robert Lawless, who teaches homeowners insurance law at the University of Illinois at Urbana-Champaign. Too many people wait until it is too late "and suffer more than they need to," he said.
Once a lender threatens to take your car or home, talking to a reliable homeowners insurance lawyer is wise, Lawless said.
He emphasizes "reliable." Some ambulance-chasing homeowners insurance lawyers take advantage of people worried about there that is not truly unmanageable, and they push people into bankruptcies they do not need. There-counseling and there-repair firms can take money from clients and not make payments to creditors.
A solution is to find out from there and counselor whether you can handle debts to putting yourself on a strict budget. But do not go to firms that advertise or promise to get rid of your debts. Select one that gets funding from the United Way or a local government, an indication it has been scrutinized.
In homeowners insurance, a person probably will be able to keep his or her home and car, but that is not a certainty. Some homeowners insurance lawyers say that people who do not file for homeowners insurance and unsuccessfully try to juggle an array of bills increase the risk that lenders will take back a car or home.
Homeowners insurance features multiple rules, and they apply differently to Chapter 7, which tends to be for the deeply desperate, and Chapter 13, which gives people a three-to five-year payment plan.
The advantage of homeowners insurance is that foreclosures, evictions, repossession, garnishment of wages or Social Security payments, utility shut-offs, and stop collection calls. Wait too long, this file, and a legal judgment might eliminate options for saving an asset.
"Do not wait until the car is on the verge of repossession or two days before the home is foreclosed," homeowners insurance lawyer Max Gardner said.
Once you file for homeowners insurance, only debts you have had until then are relieved. Say you're unemployed and relying on credit cards for food and gas. If you file, the card companies might cancel your cards. But while you are in homeowners insurance, you might get credit card offers because the banks might consider you a safer risk now that you have little or no there and you cannot file for another seven or eight years. Remember that you will not get any relief for debts taken it after homeowners insurance.
Gail MarksJarvis is a personal-finance columnist for the Chicago Tribune. E-mail at gmarksjarvis@tribune.com her.
FB. init ({appId: ' 118770388153276 '//philly appID status: true//check the login status of cookie: true,//enable cookies to allow the server to access the session xfbml: true//parse XFBML});Why are we asking you to register? We've made some changes to increase the quality of the user experience and dialogue, and reduce the number of inappropriate or offensive posts. You're now required to have a registered username and account before adding a comment. This will improve the experience for everyone. We apologize for the inconvenience. Join the conversation! According to our terms of service, you are not yet of legal age to be able to contribute to this site. Please read our policy. Thank you for registering!
Please note that your registration will not be considered fully complete until you confirm that, following the link within the index.php provided in a confirmation email that was just sent to.
Until you follow the link in that confirmation email, you may log in but will not be able to comment, so make sure to check your inbox for a message from register@philly.com.
CURRENTLY SHOWING ON philly.com document document.write (unescape ("% 3Cscript src = '" + (document.location.protocol = "https:"? "https://sb ":" ") +" http://b. scorecardresearch.com/beacon.js '% 3E% 3 c/script% 3E ")); COMSCORE. beacon ({c1: 2, c2:" 6034697 ", c3:" 6034697 ", c4:" www.philly.com/philly/business/personal_finance/20101226_personal_finance__bankruptcy_is_no_longer_a_doomsday.html ", c5, c6:" ":" ", c15:" "});
沒有留言:
張貼留言