Mortgage : Home Loans : Refinance : Home Equity Loans

By Rebecca Oconnor

Many consumers are finding themselves with heavy credit card debt and unable to make the newly increased payments. In the past, struggling debtors behind in payments with no solution in sight could file a Chapter 7 bankruptcy and eliminate any unsecured loan. With the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 now in effect, filing a bankruptcy is not the easy answer it used to be. Noted bankruptcy specialist Michael H. Reed, partner in the law firm of Pepper Hamilton LLP in Philadelphia explains, “Under the new amendments, the bankruptcy trustee, or any creditor, can move to dismiss a Chapter 7 filing if the debtor’s income is greater than the state median income.”

With bankruptcy often not the best option, the better solution is debt consolidation loans. If you have equity in your home, now may be the time to tap into it and get your credit card debt under control. A home equity loan can be utilized to pay off all credit debt. The payments on this second mortgage will be much lower than a credit card payment because it is amortized over a longer period. If you get a fixed-rate mortgage, you

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and resources visit Mortgage Refinancing.
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This entry was posted on Tuesday, June 27th, 2006 at 5:46 am and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.