Here in Boca Raton, Boynton Beach, Delray and Lake Worth - the Short Sale has become a way of life. They are so frequent, that I have people with equity come in and tell me that they want to do a "short sale". Unfortunately, this is often a terrible option that leaves you out in the street with lousy credit and a tax obligation.
I am frequently amazed at how misunderstood the world of exemption planning is for people facing financial problems. Exemption planning refers to the process of figuring out which stuff you are "protecting" and which stuff is available if your creditors came to your house and took it. It is what you are talking about when you say "won't the trustee take my stuff"?
What a great topic on Bankruptcy Law Network "Your 401k is Not a Piggy Bank" at http://www.bankruptcylawnetwork.com/your-401k-is-not-a-piggy-bank/. This article does a great job of highlighting the pitfalls and challenges of using your 401K money, I just do not think it goes far enough.
When should you be skeptical that maybe the financial industry is lying to you? Simple, when billions are spent on television and media adds to create a false reality for you about your credit score that may be costing you money. Ever notice how many commercials there are encouraging you to manage and protect your credit score? Why?
Finally! The Southern District of Florida Bankruptcy Court adopted a Loss Mitigation Mediation program to help home owners keep their homes. Similar programs have a remarkable success of rate of well over 70%. That means that people in Boca, Boynton, Delray and other Palm Beach County cities will soon experience a reduction in principle, interest rate, principle forgiveness and other benefits designed to keep you in your home.
Unfortunately, here in Boynton Beach and Palm Beach County our clients face the same challenges to their financial health as the remainder of the Country and DIVORCE is one of the big three! Divorce can destroy financial health. Divorce is a difficult and trying process that runs up legal bills and often leaves people saddled with debt. Marital dissolution agreements make the situation worse by adding complex indemnification clauses that have the other party pay the other's expenses even after a bankruptcy discharge.
You hear it from realtors, financial advisors and on the web:
On Friday evening I volunteered and had a question and answer session for a Prostate Cancer support group at the hospital in Wellington. Their number one question was "how do I avoid losing everything." Most of them have to fight tooth and nail with their insurance companies for coverage and medication. 2nd opinions are rarely covered. Treatment plans last for months, often running into tens of thousands of dollars in co-payments and not covered expenses. Often patients reported that they had to take unpaid leave from work during treatment.
Modifications can be a great tool in creating a new financial future, but only as part of a balanced financial strategy. Unfortunately the media and the web are full of misunderstandings that can leave the unwary in a heap of trouble. Get your professional advice from a professional - a lawyer - not some random web site.
Today our team attended the Palm Beach County Caregiver's conference.