You don’t open most of your mail because it is full of dunning letters threatening lawsuits, wage garnishments or liens on your property.
You are so far behind in your mortgage payments, you don’t see how you can possibly catch them up. If any of these sound like what you are dealing with on a daily basis, it is time to reach out to our bankruptcy attorneys who can help you eliminate the stress of being behind in your bills.
We can help in many ways including:
If you have no job, or very limited income, and either do not own a home or have no equity in your home, you may be eligible to file Chapter 7 bankruptcy. This type of bankruptcy is designed for those who are in debt, have little or no ability to repay that debt and who do not have enough equity in their home that it could be used to repay unsecured debt. In most states, even if you do have some equity in your home, it may be exempt from bankruptcy proceedings under state law. There are other items you may own, such as a vehicle, tools you need for work, clothing and other items that are protected under bankruptcy law. In Chapter 7 bankruptcy, once the trustee discharges the case, your debts are eliminated and you can get a fresh start. You are required to undergo credit counseling with an agency approved by the United States Bankruptcy Court before the bankruptcy can be discharged, however.
If you have a steady income, but are unable to pay your debts, you may be eligible for a Chapter 13 bankruptcy. In this type of bankruptcy, your debts are reorganized so that priority debts, like child support, alimony and other debts that cannot be discharged are paid first. The trustee then reviews your mortgage and vehicle loans, including them in your repayment plan. Once those debts have been reorganized, the trustee will divide all remaining disposable income among creditors. You may not have to pay the entire debt and some creditors will not require payment at all. The payment plan lasts between three and five years. There is no official form for repayment plans in Chapter 13 bankruptcy, although each state may have devised their own forms and formulas. If you cannot meet your repayment plan, the trustee may modify the plan or you may be able to discharge your plan based on hardship. You may also be able to convert the bankruptcy to Chapter 7 if you meet certain requirements.
If you are behind on your mortgage payments, you may qualify for a loan modification. Our Real Estate attorneys say that modification of a mortgage loan allows you to reduce your payments or change the terms of your loan, such as the interest rate, in order to help you get your mortgage current again. It is highly recommended that you talk to real estate attorneys before attempting a loan modification as the process can be complicated and banks are often reluctant to enter into such agreements with customers.
If you are dealing with collection calls, facing foreclosure on your mortgage or are concerned about wage attachments or property liens, contact our office to speak to one of our bankruptcy attorneys about your options.