A key component to Chapter 13 bankruptcy is developing a budget that will get finances back on track. To be successful, that budget needs to be affordable.
The largest item on a bankruptcy workout budget is usually a home mortgage. That item has to fit into a budget that’s affordable.
- Filing bankruptcy stops foreclosure, sometimes temporarily, sometimes permanently .
- By stopping foreclosure, there is additional time to work on loan modification.
- Will getting the interest rate down or extending the payments solve the affordability problem?
- Does the home’s value make loan modification the right answer?
A bankruptcy attorney can explain loan modification and how it can be a necessary part of bankruptcy debt relief. When the bank knows you are filing bankruptcy, there is an additional incentive to work with you and your lawyer on loan modification.
This is also an opportunity to discuss whether you want to keep a home that is upside down. Only you can make that decision. Make sure you have all the facts you need to make the decision that’s right for you.
Get the facts about loan modification from a debt relief lawyer.
What to do about a home mortgage is an important decision. Contact us for an appointment. The consultation is free.
