29
2009
Dealing with Chapter 13 Bankruptcy
Bankruptcy is looming on the horizon and Chapter 13 is beginning to look really good, but no one wants to give up the house.
Using Chapter 13 will allow those facing bankruptcy to stop foreclosure and save their homes. In fact, Chapter 13 protects equity in the home, helps balance the mortgage default, and helps get rid of other crushing debts.
Things seem to have come full circle in the mortgage industry, swinging from a once booming economy to a recession. Many people recall mortgage lenders used to offer really low adjustable rate mortgages, no money down mortgages, and 100% to 110% mortgage loans. Gone are those days.
Nowadays adjustable rate mortgages have increased from roughly 5% to over 10% depending on who the lender happens to be. Homeowners are faced with suffocating mortgage payments virtually double what they used to be. As interest rates rise, so do the mortgage payments.
Unfortunately, the real estate market is also very soft right now which means homes have not appreciated any in value, not like they used to. They also don’t give homeowners any leeway to refinance and use their equity. As this situation keeps spiraling out of control, Chapter 13 bankruptcy begins to look very attractive.
“Homeowners may file Chapter 13 that would allow them to catch up with their mortgage payments – interest free,” explained Jay Fortier of The Law Office of Jay F. Fortier, P.C., in Chicago, Illinois. Fortier has extensive experience in this area and knows what homeowners are going through when they are faced with rapidly escalating mortgages payments and no extra money to pay them – even if the family works.
Chapter 13 will allow the homeowners to consolidate other financed items (other debts) and in the process, wind up actually saving some money on the interest rates. This break often means the family is able to carry their debt load with dignity and be able, in the long run, to keep up payments.
While Chapter 13 is a viable option in this day and age, the other route consumers may opt for is consolidating credit card debts, medical bills and other loans. In some instances they may wind up only paying back about 10 cents on the dollar. “It’s an attractive option, and one I explain to my clients,” added Fortier.
To speak with a Chicago bankruptcy lawyer or to learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.
Related Posts
Categories
Archives
- June 2015
- May 2015
- April 2015
- February 2015
- January 2015
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- February 2014
- January 2014
- November 2013
- September 2013
- August 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- March 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- May 2010
- April 2010
- March 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009