3 Years = No Car Payments, No Credit Cards Payments, Just 1 Debt: Your Mortgage

06 Jun 3 Years = No Car Payments, No Credit Cards Payments, Just 1 Debt: Your Mortgage

How would you like to eliminate all your credit card debt, all your car debt, and all your mortgage debt except the first mortgage, in 36 months? And what if you could do that by paying less than what you are currently paying now? Sound too good to be true? Well, it is true and you can!

Welcome to the world of Title 11 of the United States Code. Under this Federal Law, its possible to be virtually debt free except for your first mortgage within 36 months by paying less than what you are paying now, and even if you are making $150,000 a year. This is not a Chapter 7 Straight Bankruptcy either. This is simply a Reorganization of debt that is affordable to you. Its quite easy too: add up all your income and subtract all your living expenses. Whatever is left is what you pay for 36 months, in most cases.


For Example:

You own a home worth $600,000 and two cars worth $12,000 and $18,000 each. You owe a first mortgage of $610,000, a second mortgage of $150,000, and HELOC of $50,000, have $60,000 credit card debt, owe $25,000 on one car, and $45,000 on the other. The cars were bought in 2005, 3 years after you bought your home in 2002. You have refinanced a few times on the house and have lived well with all the cash out you took from the past 6 years of appreciation. However, you can no longer afford any of this anymore, cant sleep, and dont want to lose everything you worked so hard for. You have tried debt consolidation without success. The mortgage lenders wont work with you, and your rates are about to change. Your income is $15,000 per month, but you take home $8500 after taxes, insurance, and retirement contributions/loans. Your monthly living expenses and monthly debt service are $12,200.00 and clearly exceed your monthly income. If you don’t count any debt payment for the cars, credit cards, and junior liens on the house, your monthly first mortgage payment and living expenses by themselves are $7,500.00 per month. You have an extra $1,000 left over each month which falls well short of the $4,700.00 required to pay the monthly payments on the cars, both junior mortgages, and all the credit card debt. Now what? Let the house and cars go and file Chapter 7? Maybe, but there might be a better option if you want to save everything.


Your best friend just tells you that there is a Federal Law called Title 11 and to see an attorney. That someone also tells you that they too just invoked Title 11 as well. So what happens under Chapter 13 of Title 11? In a nutshell, you pay $1000 per month and 36 months from now, you owe NO MORE DEBT except your first mortgage.


In 3 years all the debt is erased except 1 mortgage remains? No, can this be true?

If you qualify, YES.

And I know its hard to believe its true since I continue to be shocked by the results I see even after 15 years of doing this.

So lets get this straight.

1) You used to pay $4,700 per month for the credit cards, 2 mortgages, and 2 car payments. This is now $1000 per month.

2) You used to owe $330,000 on the cars, junior mortgages, and credit cards, but now in 3 years this is $0.00.

3) In three years, your house appreciated 10% and went from $610,000 to $671,000.00, so now you have $61,000 equity and are no longer upside down $210,000 in the hole on the house.

4) You did not lose your House or your Cars.

With the real estate market the way it is, and these beautiful new bankruptcy laws which were passed by Congress in 2005, sophisticated insolvency attorneys are now making lemonaide out of lemons. Like I said, each day I continue to be amazed at how Title 11 is creating miracles in these tough times!

If you find yourself in this situation, call an experienced insolvency attorney today!

Written by Michael G. Doan



Related Posts Plugin for WordPress, Blogger...
The following two tabs change content below.

Bankruptcy Law Network (BLN)

No Comments

Sorry, the comment form is closed at this time.