With the increase in property values in South Florida, numerous debtors are coming to my office in an attempt to save their homes. Filing of a Chapter 13 bankruptcy in Miami or Fort Lauderdale can do just that. Here are a few ways a Chapter 13 bankruptcy can assist you in saving your home.
Few Payments Behind – If the debtor is only a few payments behind, and the regular payments and interest are favorable terms, then the debtor can use a Chapter 13 bankruptcy to play catch up on the debt. The debtor can get caught up on the arrears (the missed payments) over a three or a five year period as long as they continue to make the regular payments.
Many Payments Behind – If the debtor is many payments behind and playing catch up is not feasible then the debtor can use Chapter 13 bankruptcy to attempt to modify the mortgage. Under a Chapter 13 bankruptcy filing the debtor can force the bank to mediation to determine whether or not the debtor can modify the mortgage. Typically the mortgage modification will allow the debtor one or all of the following:
1. Decrease the interest rate of the mortgage
2. Extend the mortgage to 40 years (rather than 30)
3. Move the missed payments to the back end of the mortgage (to all the debtor to become current)
It is extremely rare that the mortgage company would decrease the loan amount but it is possible in some cases.
If you are thinking of filing for bankruptcy in South Florida then you should speak with an experienced Miami Bankruptcy Lawyer . Attorney of Shmucher, of Shmucher Law, PL offers a free consultation to discuss your individual case, please call 954.309.5559 or 305.741.5553 to setup an appointment. Consultations are available seven days a week and we have evening appointments available.
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