Consumer Bankruptcy and Debt Consolidation
Saving Your Home With Chapter 13
If you can't catch up all of the past due payments on your home and the lender has scheduled your home for foreclosure, you may still be able to STOP the foreclosure sale and keep your home. However, you MUST file the Chapter 13 BEFORE the foreclosure sale date. After the foreclosure is stopped, we submit a Chapter 13 Plan which allows you to repay the past due payments over a 36 to 60 month Chapter 13 plan period. Also, you may be able to catch up your house payment AND discharge any unsecured debts such as credit card, medical bills, and many more. Once the plan is completed, you will continue with your regular monthly payment to your mortgage company.
Does your home have two or more mortgages that you are behind on? Not a problem, we can include those too.
Are you months behind on your vehicle? Filing a Chapter 13 automatically stops ALL collection efforts against you, including repossession of your vehicle. Chapter 13 sort of works like a refinancing of your car loan. Instead of keeping the same car payment schedule, the total amount you owe for the car is repaid over a 36 to 60 month plan period. If you purchased your car more than 910 days before filing a Chapter 13 you may be able to pay only the NADA value of the car instead of the total amount owed (this is called a "cram down"). You will also pay only 7% interest instead of the astronomical interest rate that people with bad credit ususally end up with. If you have had your vehicle for any amount of time, the Chapter 13 car payment is usually lower than the regular monthly car payment you were required to make before you filed Chapter 13 AND you do not have to come up with all the past due payments at once!
If you have loans with collateral such as household goods (stereo, computers, tvs, gym equipment, etc) you can also include these in a Chapter 13. We will put the debts in a Chapter 13 plan payment for 36 to 60 months and in most cases, we can pay only the VALUE of the collateral. Filing a Chapter 13 will stop any and all collection efforts against you, meaning you won't have to worry about the lender coming to your home and repossessing the collateral!