4 Ways to Survive an Economic Depression

Right now, our country is in the State of a Major Financial Crisis. In less than
three years, over nine Major Banks collapsed. Millions of Americans have lost
their jobs in less than a year. The unemployment rate is at an all-time high.
Foreclosures also hit an all-time high. The economic and job future look grim and
bleakly. On top of that, the Obama Administration predicted that unemployment
will be well over 12% by the end of the year. With no jobs in sight and the
housing market crisis still unsettled, we must brace ourselves for an economic
disaster, the worst recession so far in America History. Below are a few
suggestions that can help you brace for the deep recession.
Modify your Mortgage – In this economic depression, it would be wise to consider a
loan modification. A loan modification is when the lender makes your mortgage
payment more affordable because you cannot afford the current mortgage on your
home. In order to qualify for a loan modification, you must convince the lender
that you cannot pay the mortgage you have now because you suffered some form of
hardship like a loss of job, divorce, or illness. The lender of course, will ask
you to prove that you can pay the new mortgage amount. The lender will usually ask
for pay stubs, hardship letter, recent tax returns and bank statements. A loan
modification is an incredible tool for this economic depression as you can save
your home, by paying a lessor amount. It is a one shot deal, so it would be wise
to use a law firm that is in the business of modifying payments. That way, you can
always save your home, as the law firm knows how to negotiate with the lender for
the modification and the law firm is already in the business of handling loan
modification.
Get Rid of Your Debt – If you have a lot of debt and little income, you should get
rid of the credit card and other unsecured loans. You can do so by filing for
bankruptcy or consider a debt settlement. A debt settlement will allow you to
settle your debt with your creditors for pennies on the dollar. Contact a law firm
that can handle debt settlement for you. In most situations, the debt that is owed
will be forgiven. If the debt is forgiven and written off, then you won’t be
required to pay taxes as it is not considered a gift. Cash is now king and it
won’t make sense for you to keep paying on credit, when you have little bit of
money. Be wise. Let the credit card go. You can always get them back when the
economy is booming. You need cash now, and credit is not cash. It is a debt. Let
it go.
File For Bankruptcy – Chapter 7 and Chapter 13 can give you a fresh start. In a
Chapter 7 bankruptcy, you can discharge your debts, giving you a “fresh start” in
that you no longer have to pay the debts you incurred before you filed bankruptcy.
In most cases, you can even keep your house and car. However, if you have
additional assets that you would like to keep, you should consider a Chapter 13.
Chapter 13 helps qualified individuals, who desire to repay their creditors but
are in financial difficulty. It allows you to make reduced payments (determined by
the court based on your income) to your creditors and still keep all your
property.
Hire an Attorney – An experienced attorney that handles loan modifications, debt
settlement, or bankruptcy will be able to help you get out of debt and ride this
economic depression cycle. The creditors for sure are using attorneys to go after
hardworking Americans in this deep recession. The creditors are not showing any
signs of slowing down nor are they sympathizing with Americans on their loss of
jobs and low housing values. As an attorney, who handles plenty of litigation, I
cannot tell you how overwhelming it can be when I am in court and hearing these
stories of creditors suing unemployed Americans and taking their little cash. The
creditors are merciless and greedy. They will bring hard working Americans to
their knees, whether we are in a recession or not. You need to get tuff too. So
hire an attorney who will stand up for you in this tuff time. You deserve to have
a bright future. Imagine if you can ride this economic depression with very little
debt, you will be in top shape when this recession is done.
About the author: Teisha Powell, is a licensed attorney in the State of Florida,
where she practices law. Ms. Powell has worked on foreclosure cases since 2004.
Ms. Powell is a graduate from Nova Southeastern University, Sheppard Law School.
During law school, Ms. Powell served as an Articles Editor for Nova Law Review.
Ms. Powell has many articles published on Bankruptcy, Loan Modification and
Foreclosure Defenses. Ms. Powell currently works in the area of foreclosure
defenses, loan modification, debt settlement and bankruptcy. She can be reached by
email at tlaw45@hotmail.com or by phone at 561-929-7229. Her web page address is
www.stopforeclosurenowinflorida.com