There are some very important things to consider when surrendering your home, that go beyond dollars and cents. Your home is where you find safety, security and serenity.  However, when you are faced with a mortgage balance that exceeds the value of your home and you are struggling to survive financially, you need to weigh your options.  Your home should not be a source of anxiety for you.  Take the following into consideration

1.  The surrender of your home may allow you the freedom to move to a better location, better neighborhood, a better city with better employment opportunities or closer to family and friends, for a better support system.          
2. The surrender of your home may provide you the opportunity to build a savings during the time period you stop making payments.  That savings could be used to put a down payment on a new home, in this low priced real estate market. 
3. Surrendering a home or strategic foreclosure should be considered a business decision.  You are the CEO of your family.  In order for your family “business” to survive financially, you must make difficult decisions at times.  When you are paying twice the amount necessary on a property that is upside-down in loan-to-value ratio, you are throwing good money down the drain and you are not building any equity.  Hence, you become a high paying renter. 
4. Lower housing costs can provide immediate relief.  Your health is far too important to spend sleepless nights trying to find a way out of a terrible real estate market.  You have options.  Let’s get a plan together and move forward. 

Start the new year off right!  We can develop a plan to get you back on the right track and eliminate the unnecessary stress and worry.  Call me for a free consultation.  Jenny L. Doling, Esq. at (760)341-8837 in the Coachella Valley and Inland Empire or (760)369-9565 in the Morongo Basin and Twentynine Palms Marine Base.

There is a negative connotation to the word “bankruptcy” and that generally comes from a lack of understanding about the process and rumors people hear. Let’s address the rumor mill and take the mystery out of bankruptcy…

Rumor: I can only keep one car if I file for bankruptcy. False!!!

Truth: The bankruptcy code does not determine what you may or may not keep. It usually depends on the available exemptions. Exemptions are laws that determine what property is exempt from your bankruptcy estate. You may be able to keep 4 cars, depending on the equity in the vehicles and what exemptions are available.

Rumor: I can’t get credit again for 7 years. False!!!

Truth: Re-establishing credit after bankruptcy is not difficult and it certainly does not take 7 years. Most clients can re-establish credit within 6 months of filing for bankruptcy. Think of it this way, you have little to no debt after bankruptcy. If you have a steady income and cannot obtain a bankruptcy discharge again for at least 4 years, you are not a big risk to the lender. You will likely receive a flood of credit card offers and auto-loan offers after filing for bankruptcy. Obviously, use caution when reestablishing your credit. Credit should be used wisely. You should check your credit report frequently to insure that no inaccuracies are reported. You may obtain a free credit report by going to: www.annualcreditreport.com . This is the only site we recommend to obtain a true free credit report from all three credit reporting agencies.

Rumor: I have $200,000 in my IRA retirement account. I will lose it if I file for bankruptcy. False!!!

Truth: It doesn’t matter if you have $1 or $1,000,000 in your qualified IRA, it is protected up to $1,000,000. You should never liquidate any portion of your retirement accounts to pay debt unless you have sought the advice of a qualified bankruptcy attorney first. You can never make up time! It is extremely difficult to set aside retirement funds and it is extremely important to do so. Statistics consistently show that Americans outlive their retirement funds or did not set-aside enough to begin with. That is why Congress enacted such stringent protections for retirement funds. Do not use retirement funds to pay down debt. You have other, more responsible, options available.

Call me for a free consultation. Jenny L. Doling, Esq. at (760)341-8837 in Palm Desert or (760)369-9565 in Yucca Valley. We are here to answer your questions.

First and foremost, ASK QUESTIONS! You need to seek the advise of an experienced bankruptcy attorney.  Don’t be afraid to ask questions.  Interview your attorney and check references.  I recommend the following questions:

1. How many bankruptcy cases have you actually filed? – Select an attorney who has filed at least 1,000 cases.
   
2. How long have you actively practiced in the area of bankruptcy? The bankruptcy laws have changed, make sure they have been actively practicing bankruptcy for at least 7 years.  This will insure that the attorney has experience prior to the 2005 Bankruptcy Reform Act and after.  You do not want an attorney who “dabbles” in the area of bankruptcy.  It is a very serious legal matter.
   
3. Does the attorney handle both Chapter 7 and Chapter 13 cases? Many attorneys do not handle Chapter 13 cases because they are more complicated and some do not have the experience to handle them.  If the attorney does not regularly handle Chapter 13 cases, this can be a good indication that he or she is not very experienced in the area of bankruptcy.
   
4. Is the attorney a member of NACBA (the National Association of Consumer Bankruptcy Attorneys) and if so, does he or she actually attend the seminars offered every 6 months? You can verify membership at www.nacba.org. NACBA is a national leader in educating attorneys in bankruptcy and advocating for your rights.  However, it is not enough that your attorney just be a member, make sure they actually attend the education seminars.
   
5. Is the attorney a member in good standing with the State Bar of California? Make sure the attorney you hire has not been suspended or disbarred.  You want an attorney in good standing and one with a clean disciplinary record.
   
6. TIP:  Try to avoid attorneys who are willing to quote a fee on the phone.  The attorney has NEVER met you, has not reviewed the details of your case and has not discussed a plan of action with you.  How can he or she HONESTLY give you a fee quote?  Beware of this tactic.  Many will give you a low-ball price just to get you in the office.  Once there, they tack on additional fees.  Don’t fall for this. You’ll wind up paying more than what you should have, with an attorney that did not give you an honest quote to begin with.

Start the new year off right!  We can develop a plan to get you back on the right track and eliminate the unnecessary stress and worry.  Call me for a free consultation.  Jenny L. Doling, Esq. at (760)341-8837 in the Coachella Valley and Inland Empire or (760)369-9565 for the Morongo Basin and Twentynine Palms Marine Base.