Bankruptcy and Mortgage Modification

In today’s unstable economy, many people find themselves facing levels of debt and insecurity like never before. The last few years demonstrated how a single event such as job loss, swelling mortgage payments, or illness can turn life upside down and leave you questioning if your family will survive.  Millions of Americans can no longer afford to pay their mortgages and are in danger of losing their homes.  If you are facing foreclosure, bankruptcy may help. 

If you have exhausted all other possibilities and feel foreclosure is imminent, it may be time to speak with a Charlotte bankruptcy lawyer to find out if bankruptcy is right for you.  Bankruptcy not only offers relief from crippling levels of debt, it may also provide leverage to negotiate a mortgage modification with your lender.

What is mortgage modification?

Mortgage modification is a revision to a loan contract that is agreed to by both the lender and the borrower.  With mortgage modification, the interest and payment amounts are adjusted on your current loan so applying for a new loan or refinancing is not necessary.  Usually this comes in the form of rate reductions and a fixed interest rate for a set period of time. 

The reality is that banks too have felt the effects of the economic downturn.  They need to keep money flowing in and figure some profit is better than none.  Lenders are now more open to discussing mortgage modification than they were before.

How does bankruptcy help?

Whether you file Chapter 13 or Chapter 7, bankruptcy may offer you the chance to save your home.  Because bankruptcy laws have recently changed, it is best to consult with a bankruptcy lawyer in Charlotte, NC to determine your eligibility. 

In Chapter 13 bankruptcy you can protect your home and most of your assets through debt consolidation where you agree to make regular payments for a set period of time.  During the consolidation process, you can also negotiate with your mortgage lender for a mortgage modification.  At the end, any remaining qualified debt is discharged. 

Chapter 7 bankruptcy may allow you to keep your home depending on your ability to prove to the mortgage lender that you can make negotiated payments for a set period of time going forward. 

These days, more and more families face foreclosure and financial hardship.  You are not alone.  It may be time to consider mortgage modification.  To find out if bankruptcy is the right answer for you, seek the advice of a local Charlotte, Gastonia, or Concord bankruptcy lawyer, such as the Schwilm Law Firm, with experience in these matters.

The Schwilm Law Firm concentrating on bankruptcy in the Charlotte NC area can assist individuals in determining which avenue will best suit their needs and current debt situation. Our bankruptcy lawyer in Charlotte NC, Lee Schwilm helps the clients to determine the extent of their debt problem and find an appropriate solution. Seeking advice and expertise from a qualified professional is recommended prior to making any decisions in regard to debt settlement or bankruptcy. If you have any questions regarding Chapter 7 bankruptcy in Charlotte or Chapter 13 bankruptcy in Charlotte contact our bankruptcy law firm at 704-567-5252.

The last few years demonstrated how a single event such as job loss, swelling mortgage payments, or illness can turn life upside down and leave you questioning if your family will survive. The bankruptcy attorney in Charlotte NC…..

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