Mortgage Issues In Bankruptcy

14 Feb Chapter 13 Bankruptcy Time Bomb: Mortgage Modification

One of the major benefits of Chapter 13 Bankruptcyis the ability to avoid second mortgages that are not secured by any value in your home. By following standards outlined in the Bankruptcy Code, you can reclassify that loan on your home into the same category as credit cards or other ordinary bills and discharge them at the end of your Chapter 13 payment plan. This is called lien stripping. You cannot do this to a mortgage in a Chapter 7 case. However, if there is even a penny of value in the home that would go to a second mortgage when the property was sold, the loan cannot be valued as unsecured. That means it must be paid during the Chapter 13 case and it also survives the Chapter 13 as a lien on the property until it s paid off.
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31 Dec Bankruptcy Mediation Program Discussed on 89.9 FM

WHAT: Bankruptcy attorney Chip Parker will join The Honorable Paul M. Glenn, Bankruptcy Judge,and the Chapter 13 Bankruptcy Trustee Douglas Neway to discuss the bankruptcy court’s new Bankruptcy Residential Mortgage Mediation Program. WHEN: January 5, 2012 at 9:00 a.m. EST WHERE: WJCT 89.9 FM or listen live...

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31 Jan Will the Chapter 13 Trustee Allow Me to Modify My Mortgage If I Can Get the Mortgage Company to Offer One?

If you are lucky enough to get your mortgage company to offer a meaningful modification of your mortgage while you are in a Chapter 13, you probably can get the Trustee and the Court to agree to allow it. There are a number of issues, however, that need to be addressed. Before modifying your mortgage you will need to inform your attorney that your mortgage company is willing to entertain a modification. You will also need to present your attorney with the details of the proposed modification. Your attorney will then get the needed permission from the Trustee and/or the Court. One of the concerns the Trustee and Court may have is how the modification will affect the amount of disposable income you have each month.
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