Case Conclusion Date: January 1, 2012
Practice Area: Bankruptcy / Chapter 13
Outcome: Chapter 13 bankruptcy put a stop to the foreclosure sale and harassing creditor phone calls. It allowed him to repay his taxes and the arrears on his mortgage over five years. At this end of his repayment plan all of his unsecured debts were discharged.
Description: Single 31 year old man and first time home owner who earned an above median income working as a customer sales representative during the day and as a bartender in the evening. He bought his $375,000 condo when the housing marketing was hot and at its peak. After the housing marketing crash the value of his house was much less than what he owed on the mortgage. Unfortunately, the restaurant that he bar tended at recently got audited by the IRS, which meant that his wage earnings and gratuity earnings was also audited. He ended up owing an additional $15,000 to the IRS in income taxes. The monthly payments had become more than he could handle and the creditor phone calls were stressing him out. It became obvious that he needed some serious legal help when the bank foreclosed on his condo. He called us so that our foreclosure experts and bankruptcy lawyers could help him better understand his financial situation and legal options. After a thorough review of his earnings and debt obligations we helped him organize a repayment plan that was best for his situation.