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Talk to your Legal Helpers Irving bankruptcy attorney before you take out a home equity loan.

Your Legal Helpers Irving bankruptcy attorney understands that you may not, at this point, wish to file for either Chapter 7 or Chapter 13. He recognizes that many people would prefer to handle their financial situation without putting a filing record on their credit report. However, your Irving bankruptcy attorney wants you to be aware that such moves as a home equity loan could prove to put you into an even worse financial situation.

Use our free financial evaluator to see if you should contact an Irving bankruptcy attorney.

Use our free financial evaluator to see if you should contact Legal Helpers

That's why your Irving bankruptcy attorney offers a free consultation service. You can simply meet with your Texas bankruptcy attorney and learn about all of your options. You will be under no obligation after your meeting unless you choose your Legal Helpers Texas bankruptcy attorney to represent you.

Home equity loans are not always the best solution.

The major pitfall of all second mortgages, home equity loans, and home-improvement loans is that the creditor will require you to pledge your home as collateral for the loan. The creditor acquires a lien on the property, and if you can't afford to make your monthly loan payments, the creditor can take your home through foreclosure, even if you are current with your first mortgage payments.

Home equity loans are often used as a "quick fix" for people cannot repay their unsecured debts, but they can result in long-term payments that are beyond their means. All of the states have bankruptcy laws that protect a certain amount of home equity from creditors. These laws allow people to discharge their unsecured debts through a Chapter 7, and keep the protected equity in their homes. The equity is also protected from any creditors who have claims eliminated in the filing. When people pay off their credit cards or other unsecured debts with a home equity loan, they turn dischargeable debt into secured debt that will survive unless the home is surrendered to the creditor.

These loans are attractive because they usually offer low interest rates and lower monthly payments, but the total amount often adds up to be much greater than the original amount of debt. The amount of interest over such a long period of time, usually 15-30 years, can be huge.

Many home equity loans also have other costs that can quickly add up to reduce the overall benefit of the loan. The borrower is usually responsible for paying for an appraisal, title insurance, and origination fees. Lenders can pack the deal with other extra charges like credit life insurance.

So, find out all your options before taking out a home equity loan!

Most sophisticated consumer debt consolidation practice.

Legal Helpers has helped over 40,000 clients discharge over $500,000,000 in debt. With our state-of-the-art computer system and experienced attorneys, we are able to offer our aggressive representation at low, flat fees. We offer several flexible payment options to meet clients' individual needs.

Contact one of our Texas lawyers today!