How Can Bankruptcy Help?
In some situations, Bankruptcy may provide the best solution. Bankruptcy may provide you with much-needed financial relief.
Our office can advise you in deciding whether bankruptcy makes sense in your individual case, and how loan modification and bankruptcy can work hand-in-hand to give you a fresh start.
While every situation is different and requires careful analysis, here are some of the advantages that bankruptcy may offer:
- Bankruptcy Stops Foreclosure and allows you to make up back-due payments over time!
- In most cases credit card debt, medical bills, payday loans and other similar debts are dischargeable in bankruptcy.
Certain other debts including taxes, child support obligations, and student loans are generally not dischargeable. - Assuming that your home is worth less than amount of your first mortgage, your second mortgage (or home equity loan)
can be “stripped off” meaning that your home is no longer security for the debt. In that case, the debt can be discharged
like a credit card or medical bill. Note this applies to chapter 13 cases only! - Due to changes in the bankruptcy law in 2005 a careful analysis is required to determine which kind of bankruptcy chapter
7 or chapter 13 is best for your situation, and how to best coordinate this planning with a loan modification.