Pursuing Loan Payments You Can Afford
If you are having trouble repaying a home or car loan, you may be wondering about your options for loan modification so you can avoid foreclosure or repossession. You may even be getting solicitations from non-lawyers offering to negotiate on your behalf.
What you need right now is some real leverage, and the U.S. bankruptcy court may be able to give you that leverage. If you file for bankruptcy, the court can order certain modifications to your loans, while your bank may be willing to work out other modifications if they know you are prepared to pursue bankruptcy.
To learn more about your loan modification options, contact me, attorney Thomas F. McGrath, Jr. Based in Bellevue, I help clients throughout the Seattle area.
Avoiding Foreclosure With Bankruptcy Court Protection
When it comes to your home, filing for bankruptcy cannot reduce the total amount that you owe. However, the bankruptcy court, as part of the Chapter 13 process, can require your lender to accept repayment of your mortgage arrears over the course of three years without interest.
Filing for Chapter 13, or preparing to do so with the help of an experienced bankruptcy lawyer, can also give you leverage in negotiating a loan modification or refinance with your bank.
While some people describe loan modification and bankruptcy as an "either/or" choice, I look at the big picture to pursue the best possible results. If you are facing foreclosure, I can help you fight to stop the foreclosure sale, and then we can look at all your options for how to proceed from there.
Pursuing Reduction or Modification of Car Loans
Car loans are a little different from home loans, because under certain conditions, the bankruptcy court may be able to reduce what you owe to the current market value of the car. This is called a cramdown and has some specific criteria.
Otherwise, bankruptcy can impact car loans in much the same way it does mortgages. Your arrears can be spread out over three years in a Chapter 13, and your bank may be willing to work out a reaffirmation agreement to lower your interest rate and monthly payments.
To learn more about possible routes toward successful home and car loan modification in Washington, contact me today.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
