Bankruptcy can be an invaluable tool and might be the right answer for your financial situation. If you answer yes to any of the following questions then please contact our office for a free consultation:

• Are you behind on your mortgage or facing foreclosure?
• Are you behind on your property taxes?
• Do you have a second mortgage loan?
• Are your wages being garnished?
• Did you have a judgment entered against you?
• Are you behind on your car payments or facing repossession?
• Are you struggling to make the minimum payments on your credit cards?
• Do you have unpaid medical bills?
• Has your bank account been frozen?
• Do you have a shut-off notice from a utility company?
• Have you taken out payday loans?
• Are you behind on your income taxes?
• Do you owe child support?
• Has your driver's license been suspended?
• Are you recently unemployed or out of work due to a disability?
• Can I modify my mortgage in a Chapter 13 Bankruptcy?

Yes. While, the filing of the bankruptcy will not automatically modify your mortgage, many mortgage companies do in fact offer a loan modification to people in bankruptcy. In fact, under HAMP (Home affordable Modification Program) a debtor in bankruptcy must be considered for a modification if one is requested by the debtor or the debtor's attorney. These modifications may offer: an interest rate reduction, a fixed interest rate, bringing the arrearage current, and in rare cases an offer to reduce principle. Even debtor's who have a received a Chapter 7 discharge are still eligible for HAMP modification.

How can I stop a foreclosure sale?

The only guaranteed way to stop a foreclosure sale is through a Chapter 13 Bankruptcy. If you have not been able to work out any options with your mortgage company prior to the foreclosure sale you should consult a bankruptcy attorney immediately. A chapter 13 can be filed to stop a foreclosure as late as the day before the sheriff's sale. However do not wait until the last day; you should consult a bankruptcy attorney early in the foreclosure process so that you understand all your options and rights in the foreclosure process. A chapter 13 bankruptcy will immediately stop a foreclosure sale and give you 3-5 years to catch up on missed mortgage payments and bring your mortgage payments current. Furthermore, many mortgage companies offer modifications to people in bankruptcy.

How can I eliminate my second mortage?

If you have a second mortgage or equity line of credit on your home a Chapter 13 Bankruptcy may bring you financial relief by eliminating your obligation to pay on your second mortgage. If you home's current market value is less than what you owe on your first mortgage then a Chapter 13 Bankruptcy might be right for you. A Chapter 13 bankruptcy plan can remove the secured second lien against your property, you won't make payments to your second mortgage while you are in bankruptcy, and upon successful completion of the bankruptcy your second mortgage lien will be eliminated forever. Contact a bankruptcy attorney at John A. Steinberger & Associates, PC today for a free consultation to see if a chapter 13 bankruptcy is right for you.