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See your Legal Helpers Mesa bankruptcy attorney before taking out a Home Equity Loan

Your Legal Helpers Mesa bankruptcy attorney is experienced in personal and family financial law. As a respected Mesa bankruptcy attorney, he has helped hundreds of clients find the best strategy to help them build a better financial future.

Find out if bankruptcy is right for you by talking to a Mesa bankruptcy attorney from Legal Helpers.

Click here for Our Free Legal Evaluation Form

Your Legal Helpers Mesa bankruptcy attorney offers a free consultation to help you with your options. During this meeting, your Arizona bankruptcy attorney will learn about your current situation. If filing for either Chapter 7 or Chapter 13 is a real option for you, he will explain the appropriate process and procedures. If filing for bankruptcy is not right for you, he will recommend other options.

Your Arizona bankruptcy attorney understands all of the options available to you. And, he can tell you the negative and positive aspects of each.

Home equity loans are not always a good idea.

Home equity loans are often recommended by financial counselors. However, a loan of this nature is not always the best idea. The major pitfall of all second mortgages, home equity loans, and home-improvement loans is that the creditor requires the borrower to pledge their home as collateral for the loan. The creditor acquires a lien on the property, and if the borrower can't afford to make their monthly loan payments, the creditor can take the home through foreclosure, even if the borrower is current with their first mortgage payments.

Home equity loans are a "quick fix" for some people who don't have sufficient income to repay their unsecured debts, and they can result in long-term payments that are beyond their means. All states have laws that protect a certain amount of home equity from creditors. These laws allow people to discharge their unsecured debts through a Chapter 7 Bankruptcy, 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 a bankruptcy unless the home is surrendered to the creditor.

These loans are attractive because they offer low interest rates and lower monthly payments, but the total amount of payments often adds up to be much greater than the original amount of debt. The total amount of interest over such a long period of time, usually 15-30 years, can be huge. With the frequently changing economy and unstable job market, home equity loans can quickly turn disastrous for many people.

Legal Helpers is more than just a debt consolidation law firm. We are in the business of really helping our clients, before, during and after. We believe that all of our clients deserve a fresh start.

Contact an Arizona lawyer from Legal Helpers.