The severe economic crisis that has been affecting the world in recent years has left millions of people unemployed and ruined financial institutions the world over. One cause of this financial crisis is the failure of the lending industry, which in the United States might be linked to the housing bubble of the past decade. If you are struggling with heavy debt as it is, the collapse of the housing bubble may have substantially reduced the value of your house. But you can find relief from your debt.
For years, lending standards were loosened and interest rates were kept low. Many people received mortgage loans for houses well beyond what they could afford, known as subprime mortgages. Traditionally, lenders shy away from giving loans to people with bad credit history, due to the risk that they won't pay. Subprime loans were intended to take advantage of the demand for those loans.
The assumption was that, because of the direction of the economy, certain lenders could return a profit by giving loans to people with a bad credit history. Tragically, their gamble was wrong. If you received a subprime mortgage, it is likely you were misled by your lender into thinking you could handle such a mortgage. During the housing bubble that may have been the case. When the bubble burst in March 2007, that entire system came apart at the seams.
Now that the system has fallen apart, you may find yourself with an enormous mortgage and an undervalued house. Under these conditions it is easy to lose control of your debt no matter who you are. With the collapse of the lending industry, your other debts, such as credit cards or student loans, may be that much more difficult to pay off.
But you are not alone. The bursting of the housing bubble has left millions of people around the country in situations similar to yours, in some cases financially destroying entire neighborhoods. For people struggling with heavy debt, filing for bankruptcy can provide relief from heavy debt and a chance to rebuild your credit. If your debt shows no signs of reducing, it may be best to file for bankruptcy now before the situation gets that much worse.
Rather than being a sign of failure, bankruptcy is the most secure way of alleviating out-of-control debt. Attempting to repay your debts on your own can turn into an uphill battle, causing you untold amounts of stress as the situation worsens.
An experienced Massachusetts bankruptcy attorney can help you. To discuss your case and learn about what bankruptcy can do to repair your credit, contact a bankruptcy attorney.
For years, lending standards were loosened and interest rates were kept low. Many people received mortgage loans for houses well beyond what they could afford, known as subprime mortgages. Traditionally, lenders shy away from giving loans to people with bad credit history, due to the risk that they won't pay. Subprime loans were intended to take advantage of the demand for those loans.
The assumption was that, because of the direction of the economy, certain lenders could return a profit by giving loans to people with a bad credit history. Tragically, their gamble was wrong. If you received a subprime mortgage, it is likely you were misled by your lender into thinking you could handle such a mortgage. During the housing bubble that may have been the case. When the bubble burst in March 2007, that entire system came apart at the seams.
Now that the system has fallen apart, you may find yourself with an enormous mortgage and an undervalued house. Under these conditions it is easy to lose control of your debt no matter who you are. With the collapse of the lending industry, your other debts, such as credit cards or student loans, may be that much more difficult to pay off.
But you are not alone. The bursting of the housing bubble has left millions of people around the country in situations similar to yours, in some cases financially destroying entire neighborhoods. For people struggling with heavy debt, filing for bankruptcy can provide relief from heavy debt and a chance to rebuild your credit. If your debt shows no signs of reducing, it may be best to file for bankruptcy now before the situation gets that much worse.
Rather than being a sign of failure, bankruptcy is the most secure way of alleviating out-of-control debt. Attempting to repay your debts on your own can turn into an uphill battle, causing you untold amounts of stress as the situation worsens.
An experienced Massachusetts bankruptcy attorney can help you. To discuss your case and learn about what bankruptcy can do to repair your credit, contact a bankruptcy attorney.
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