If you have experienced a temporary gap in income, perhaps due to a job loss, a divorce, an injury or an illness, it can be difficult to continue to make ends meet, and you may have gotten behind on your mortgage payments. The combination of mortgage payments and late fees can make it impossible to catch up. This can lead to foreclosure. The federal and state governments now provide Mortgage Mediation and Modification programs which in some cases can stop foreclosure and reinstate mortgage loans. Attorney Jefferson Hanna sometimes uses those programs to help clients. However, Mediation and Modification do not work for many people. One reason is that these programs do not deal with your entire financial situation. For example, you may have excessive credit card debt, unpaid IRS taxes. Also, the “red tape” of these programs (constant document requests and phone calls) wears you down and you end up not qualifying. At the Law Offices of Attorney Jefferson Hanna, we deal with your entire financial situation. Chapter 13 is often the answer. Chapter 13 is a court process which permits you to repay any type of debt over a three to five year plan, based on your ability to pay. Attorney Hanna will prepare your plan in compliance with the bankruptcy code. Your Plan will be customized to your unique situation. Your Chapter 13 Bankruptcy repayment plan will allow you to repay back mortgage payments, taxes, and other secured debts in full, and repay a portion of your unsecured debts (credit cards, medical bills, loan etc.) to the degree you can afford, with little or no interest. This can provide the financial breathing room you need to make a financial recovery. You can generally keep all of your property in a Chapter 13 Bankruptcy. At the end of the repayment plan, remaining unsecured debts will be discharged (forgiven) and you will be up to date on your secured obligations.
- Chapter 13 will stop a foreclosure, force your lender to accept regular monthly payments again, and let you repay the past due payments over a three to five year period.
- If you have been turned down by your lender For a Modification, Mediation or other government program, Chapter 13 can save your home. It is an IMMEDIATE Court Ordered Plan. It does not require your lenders approval, and does not require calls or letters to your lender.
Chapter 13 Benefits
There are many reasons why you may choose to file Chapter 13 Bankruptcy:
- Chapter 13 gives you time to catch up on past due mortgage payments to prevent a home foreclosure.
- Chapter 13 allows non-dischargeable taxes to be paid over an extended time period while stopping collection efforts from the IRS or other taxing authorities.
- Chapter 13 can allow a small business owner to stay in business and keep the assets of the business, while repaying debts over an extended time period.
Chapter 13 is NOT Debt Consolidation
The filing of a Chapter 13 Bankruptcy Petition will immediately STOP ALL CREDITOR AND COLLECTION ACTIVITY including: harassing phone calls, repossessions, wage garnishments, IRS garnishments, bank attachments and collection letters. A Chapter 13 Bankruptcy filing will also stop a pending foreclosure lawsuit. All of this happens because under federal bankruptcy law an “automatic stay” of all collection activity by any creditor goes into effect. You will have the opportunity to rebuild your financial life, and eventually your credit rating. Don’t confuse Chapter 13 Bankruptcy with debt consolidation. Most plans with debt consolidation companies quickly fall apart because a debt consolidation company has no power to stop creditor collection activities. While you may be making timely payments to a debt consolidation company, nothing stops a creditor from suing you and attaching your wages or bank accounts.
At the Law Office of Attorney Jefferson Hanna in Middletown, Connecticut, we help people find relief from debt problems through the bankruptcy process. Since 1983, Attorney Jefferson Hanna has provided honest, straightforward advice about bankruptcy to thousands of clients. If Chapter 13 Bankruptcy is right for you, we will help you at every stage of the process. Attorney Jefferson Hanna will work with you to design a Chapter 13 repayment plan that is manageable for you. Everyone at our firm is dedicated to making your Chapter 13 Plan work. We take the time to find out what is important to you in your specific situation.
Credit problems and Foreclosure in particular are serious legal matters. You cannot save your home without immediate qualified legal help. To speak with Attorney Jefferson Hanna, a reputable and experienced Connecticut Bankruptcy Lawyer, contact the law office of Jefferson Hanna at 860-347-4741. Attorney Jefferson Hanna, lll serves clients throughout Connecticut. His office is located at 484 Main Street, Suite 23, Middletown, CT 06457.