bank refuses any workout program for a loan modification, they notified us that they are strting a forclosure on our property
Pick up the phone tomorrow and call some local bankruptcy attorneys. Make appointments with a two or three and keep them. Explain your situation and ask questions about what Ch13 can and cannot do. Take relevant information regarding your financial situation. An in person evaluation of your situation will give you a much better idea of what Ch13 can do in your situation than anyone can in responding to a two sentence inquiry on an internet forum. Good luck, I hope you and your attorney can save your home.
DISCLAIMER: This message is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this message. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area. I am a Federally Designated Debt Relief Agency under the United States Bankruptcy Code. I proudly help people in financial need file bankruptcy cases. IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment).
The better question is: "What alternatives do I have to stop a foreclosure?" The answer is not many. If it is a judicial foreclosure your rights may be impacted in as little as 30 days after the complaint has been served on you. If you hire an attorney skilled in these matters they may be able to interpose a defense on your behalf. However, defense in state court is expensive and not always effective.
While Chapter 13 is not a perfect solution, and if your property is your home it will not permit you to modify the terms of the loan without consent from your lender, it will accord you another opportunity to attempt another loan modification if the first did not succeed. In addition, if you have sufficient income to do so, you may be able to cure the default in payment that prompted the foreclosure over as long as 60 months in equal installments.
This answer is of a general nature and is not intended as legal advice. The fact that I have responded to your question is not intended to form an attorney/client relationship and I do not agree to represent you without further review, a conflict search, an executed legal services agreement, and the payment of an agreed retainer. In accord with the provisions of IRS Circular 230, this answer can not be used as a defense against the assertion of any tax penalty. Pursuant to federal law, I am a debt relief agency. I file cases in Federal Bankruptcy Court, US Tax Court and Oregon Tax Court.
It is difficult to answer that question without knowing your definition of "best", ie., what is your goal ... what do you want to accomplish? Once a sale is pending, some form of BK is the "best" way to stop the sale. A Chapter 13 will give you 3-5 yrs to pay the arrearages that are past due while you keep up the regular payments going forward. But if you are not really interested in saving the house, then a Chapter 7 may be best depending on a number of other factors.
You should call an experienced chapter 13 attorney and see what your best option is. Most attorneys that practice bankruptcy will offer a free consultation.
The answer above is for general information purposes only. You should talk to an attorney to determine your specific legal rights.
I agree that I think you need to discuss your options with a bankruptcy attorney.
Family Law Attorney
Time to sit down with an experienced bankruptcy attorney to discuss your options. Information is power, and you will feel better. I have been handling Ch7 & Ch13 bankruptcies for 26 years. Give me a call.
Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662. Please be aware that each answer on this website is based upon the facts, or lack thereof, provided in the question. To be sure you get complete and comprehensive answers, based upon the totality of your situation, contact a local attorney who specializes in the area of law that involves your legal problem. Diane L. Gruber has been practicing law in Oregon for 26 years, specializing in family law, bankruptcy, estate planning and probate. Note: Diane L. Gruber does not represent you until a written fee agreement has been signed by you and Diane L. Gruber, and the fee listed in the agreement has been paid.
Chapter 7 Bankruptcy Attorney
Chapter 13 bankruptcy is often an excellent way to stop foreclosure. The Chapter 13 bankruptcy will stop the foreclosure immediately upon the bankruptcy filing and then you will be considered current with your payments under the law. The past due amounts of your mortgage payments will be paid through the Chapter 13 payment plan. You still will have to make your regular mortgage payments from the date you file the bankruptcy, but you will not have to worry about paying the past due amounts directly. The past due mortgage delinquency will be paid through the regular chapter 13 plan payments you make to the Chapter 13 Trustee. You will be required to pay all of your mortgage arrears during the life of your Chapter 13 plan.
In order to get the benefits of Chapter 13 bankruptcy you have to qualify for it. Chapter 13 bankruptcy is not always the best options in all situations, but for a lot of people it is an excellent option. You should schedule a free consultation right away with an experienced bankruptcy lawyer who can help you explore your options. I would be happy to meet with you to discuss your options.
The answer here does not create an attorney-client relationship. I am licensed in the State of Oregon and Washington, so if you reside in a different state, you should seek legal advice from attorney licensed in your state or jurisdiction. You rely on any internet legal information at your own risk. My answers here are just general legal information and do not constitute legal advice as I do not have all the facts necessary to render a specific legal opinion. Relying on this general legal information is done at your own risk.