At Bankruptcy Law Professionals, we are experts in all aspects of consumer bankruptcy including both Chapter 7 and Chapter 13 filings. If you are interested in keeping your home and saving it from foreclosure, a Chapter 13 bankruptcy can help you bring your loan back to current and pay back the past due debt. Unlike loan modifications and government modification programs like HAMP and HARP that claim to be able to help you stay in your home, Chapter 13 bankruptcy does not require approvals and participation from your mortgage lender. A Chapter 13 bankruptcy will force the mortgage company to participate in a payment plan to help you get caught up on your mortgage and home loan. Other modification programs require your bank to be a participant in the program and your bank will have the final decision whether they want to work with you in a loan modification situation or not.
By now, most of us have heard difficult stories related to loan modifications with banks. Banks will take months and months to process a loan modification only to leave home owners with a larger past due debt amount and a rejection for a loan modification. Many people are left with large past due balances that are impossible to recover from, resulting in impending foreclosure. The reason this scenario is so common is because there are no rules on how banks should be handling loan modifications. There is no government guideline for the banks to utilize loan modification programs. A Chapter 13 will force banks into participating in a loan repayment program that is court ordered. The bankruptcy court will approve a repayment plan and get your loan back to current status without any need for approval from your bank.
If you are interested in learning more about Chapter 13 bankruptcy and how your personal financial situation can be repaired through Chapter 13, please contact us at (855) 257 – 7671. Bankruptcy Law Professionals looks forward to hearing from you to ask any questions or schedule an appointment.