Mariano & Coiro, P.C.
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Posts tagged "Legal"

CAN BANKRUPTCY HELP ME IF MY HOME AND CAR PAYMENTS ARE UP TO DATE (OR ONLY SLIGHTLY BEHIND) BUT MY CREDIT CARD AND OTHER DEBT IS OUT OF CONTROL?

It's altogether possible that Bankruptcy can be effectively used to eliminate or reduce your credit card, medical bills or other debt (known as "unsecured debt"), depending upon your complete financial situation and the type of Bankruptcy you can file, while still allowing you to keep your house and car.
For example, if your home has little or no equity (i.e., the value of your home is not much in excess of what you owe), and depending upon your income, you may be able to file a Chapter 7 Bankruptcy, keep your home and car, and completely eliminate your other debts.
If your home has considerable equity, and/or your income is too high to qualify for a Chapter 7, you may still be able to file a Chapter 13 and reduce or even eliminate some of your other debts. The amount of debts you would need to re-pay, if any, in a Chapter 13, would depend principally upon your disposable monthly income, as determined by law. The re-payment period would be in a court monitored re-payment plan over 3-5 years. Even if you would be forced to make payments on your other debt, The Chapter 13 would "freeze" the debt as of the date of your filing. No further interest or penalties would accrue, and once you completed your Chapter 13 plan, any amounts still unpaid would be discharged/eliminated by the Court.
Let us examine your particular situation, FREE OF CHARGE, to properly advise you of your available options, and show you how the Bankruptcy laws can help. 

MY HOUSE IS IN FORECLOSURE OR PRE-FORECLOSURE. I HAVE THE MONEY TO MAKE MY REGULAR MORTGAGE PAYMENTS AGAIN, BUT THE BANK WON'T LET ME, UNLESS I PAY ALL MY ARREARS FIRST. CAN BANKRUPTCY HELP SAVE MY HOME ?

While every situation is different, a Chapter 13 Bankruptcy is usually quite effective for situations where you've fallen behind on your mortgage or other debt payments due to a temporary setback, such as loss of employment or illness, which has since been resolved.
For example, if you are a year behind on your $1,500.00 monthly mortgage payments (i.e., $18,000.00 in arrears), but are now able to resume making regular mortgage payments, then Chapter 13 Bankruptcy can help save your home.
In a Chapter 13, the foreclosure, and even a Sheriff's Sale, will be STOPPED, while you are allowed an opportunity to structure a court monitored re-payment plan which would have you fully caught up on your arrears in a 3-5 year period, while making all of your future payments going forward.
In a Chapter 13, you may even be able to eliminate or reduce some of your other debts or even completely eliminate a second or third mortgage, if you qualify.
Even if all is not well again in your life, financially speaking, Chapter 13 may afford you the opportunity to re-organize your debts, while saving your home at the same time.
Let us examine your particular situation, FREE OF CHARGE, to properly advise you of your available options.