In a financial crisis, many people face foreclosure.
The question uppermost in their minds is, whether bankruptcy is the best option for them if they want to keep their homes.
In such a predicament, Baltimore MD bankruptcy lawyers recommend consumers to file for Chapter 13 bankruptcy.
Chapter 13 allows you to pay off a mortgage over a specified period in a repayment plan that is approved by the court.
This period is usually 3-5 years.
However, a local MD Bankruptcy lawyer warns that consumers must have enough income to meet their current mortgage payment at the time Chapter 13 is in vogue.
Taking stock of one’s finances when funds are in short is a thankless task.
If saving your home is your only objective, it may make sense to explore other options for avoiding foreclosure.
You can either take advantage of government’s “mortgage modification” plans or negotiate with your lender for a softer repayment option.
At the end of the day, it is the final result that counts.
Baltimore MD bankruptcy lawyers are of the opinion that Chapter 13 can help consumers eliminate payments on the second and third mortgages.
If your first mortgage is secured by the entire value of your home, that is if the equity of the home has dropped considerably, you may no longer have any equity to secure subsequent mortgages.
In such a situation, Chapter 13 can come to your rescue. It enables you to go for lien stripping.
This means you will be able to eliminate your second and third mortgages from your real estate. The court will recategorize them as unsecured debt.
But the most important benefit your get is, when you file for Chapter 13 bankruptcy, all foreclosure proceedings will stop.
The Law Office of Rowena N. Nelson is a leading provider of legal services in the Districts of Columbia and Maryland.
The question uppermost in their minds is, whether bankruptcy is the best option for them if they want to keep their homes.
In such a predicament, Baltimore MD bankruptcy lawyers recommend consumers to file for Chapter 13 bankruptcy.
Chapter 13 allows you to pay off a mortgage over a specified period in a repayment plan that is approved by the court.
This period is usually 3-5 years.
However, a local MD Bankruptcy lawyer warns that consumers must have enough income to meet their current mortgage payment at the time Chapter 13 is in vogue.
Taking stock of one’s finances when funds are in short is a thankless task.
If saving your home is your only objective, it may make sense to explore other options for avoiding foreclosure.
You can either take advantage of government’s “mortgage modification” plans or negotiate with your lender for a softer repayment option.
At the end of the day, it is the final result that counts.
Baltimore MD bankruptcy lawyers are of the opinion that Chapter 13 can help consumers eliminate payments on the second and third mortgages.
If your first mortgage is secured by the entire value of your home, that is if the equity of the home has dropped considerably, you may no longer have any equity to secure subsequent mortgages.
In such a situation, Chapter 13 can come to your rescue. It enables you to go for lien stripping.
This means you will be able to eliminate your second and third mortgages from your real estate. The court will recategorize them as unsecured debt.
But the most important benefit your get is, when you file for Chapter 13 bankruptcy, all foreclosure proceedings will stop.
The Law Office of Rowena N. Nelson is a leading provider of legal services in the Districts of Columbia and Maryland.
