Are there any programs available with the stimulus bill to help people in chapter 13 bankruptcy?
I have enough equity in my house to refinance and pay my chapter 13 bankruptcy but is there anyone out there willing to give me a loan. I have been paying on my bankruptcy for three years and am ready to start rebuilding my credit.
Posted July 9th, 2010 in Bankruptcy Q And A. Tagged: chapter 13 bankruptcy.
The program has not been passed but is being debated. It would allow your bankruptcy judge to "cram down" your home mortgage from $200,000 to $100,000 with no penalty to you. The payments would drop in half..
July 9th, 2010 at 7:01 amIf you’d continue making timely payments on your bankruptcy your credit score would improve gradually. But with a low credit score nobody would dare give you a loan!
Now coming down to your point, lets get one thing clearly-
The chapter 13 bankruptcy reform is different than the stimulus bill. The former allows the bankruptcy courts to alter home mortgage terms in order to ensure a fixed rate for the home owner. The full term gets expanded to 40 years and balance is now equal to the house worth. The taxpayers are not needed to pay anything and there aren’t any chances for anyone to pull the taxpayers’ money for personal benefits.
The stimulus bill is certainly way ahead being the single largest money disbursement ever.
July 9th, 2010 at 7:01 amIt’s a package to lower payroll tax worth $400 for individuals and worth $800 for couples. In a way it is meant to create more than 3.5 million opportunities for the unemployed. Though it’s reflecting more government expenditure it is aimed at reducing the tax burden for buyout firms who’re trying to reshape debt and are not filing for bankruptcy! So, you can easily understand the differences and how it has got nothing to help you in chapter 13 bankruptcy.