Hello, my name is Quianna Ridalgo. I enjoy talking to others about bankruptcy case outcomes. Court officials handle each type of debt, from credit cards to home loans, differently. Debtors must carefully prepare themselves for the court proceedings to cope with the outcome appropriately. The way creditors handle the discharged debt also interests me. Bankruptcy attorneys assist their clients with each step of the bankruptcy process from filing paperwork to meeting with creditors. Debtors and creditors both receive counsel that helps them move forward appropriately at every point in the case. The information I share on my site may help you learn about everyone's role in these complex cases. Feel free to come by anytime to learn more information about this interesting subject.
Did you file for Chapter 7 bankruptcy but were denied due to not passing the means test because you make
Most people are aware of the fact that a mortgage cannot be discharged as part of a bankruptcy case becau
If you are considering filing for some financial relief using a Chapter 7 bankruptcy, you will need to ta
When it comes to your finances, you might be used to making your own decisions. Now that you might have f
Chapter 13 bankruptcy can help you catch up on past due payments, pay off some bills, and get back on tra
When you initially took on your mortgage, you had every intention of making your monthly payments as a responsible borrower. Somewhere along the lines, something happened to put you behind, and you can no longer afford to pay back your past due payments and keep your mortgage current. Unfortunately, too many missed payments means your home could go into foreclosure, which basically means the financing agency begins the process of recouping their loss and you will have to leave your home. Filing chapter 13 bankruptcy could be a possible solution to your looming foreclosure woes. Here's a look at a few things to consider about chapter 13 bankruptcy and avoiding foreclosure.
Chapter 13 bankruptcy is a good option if you have an income.
Chapter 13 bankruptcy is often touted as the "wage earner's" bankruptcy solution because it allows individuals to use their funds to make smaller payments toward their debt than what the debtor is currently requesting. Instead of the filer's debts being completely discharged, the debt owed is set up on a repayment plan by the bankruptcy court. This kind of bankruptcy filing can be logical if you are facing foreclosure and you do have a job. The court may be able to work out a plan with the lender that involves you paying back your overdue payments with smaller monthly payments instead of all at once.
Chapter 13 will not free you from incoming mortgage payments.
Once you have filed for chapter 13 bankruptcy and have a payment plan in place, you will still be responsible for paying any new or incoming monthly mortgage payments. For example, you may have to pay $300 a month toward your bankruptcy-associated debts, and part of that will go to your mortgage holder, but you will continue to be responsible for regular mortgage payments. If you default on either, it can void the payment plan that is in place and put you at risk of foreclosure again.
Chapter 13 may also help protect a co-signer on your mortgage account.
If you have a mortgage loan that you only were able to get because you had a co-signer backing you up, their credit will be just as much at risk as yours if the house goes into foreclosure. One of the advantages of chapter 13 is that as soon as the motion is filed, proceedings to foreclose the home will stop, and any co-signers on the account will also be protected.
For more information about whether Chapter 13 bankruptcy is the right option for you, contact a local company like Lifeline Legal LLP.
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