The Unique Finance Blog

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.”

The best scenario to consider a mortgage refinancing loan is when you owe quite a large amount and you still have many years of paying off your home loan. It’s a good idea to consult a broker or a mortgage officer regarding the new interest rate’s influence on your monthly payments. You may also want to know the length of time for you to recoup the new loan’s closing cost. However, to give you an idea of when it makes sense to do a mortgage refinance loan, here are some of the instances.