How Chapter 13 can make your home more affordable
It’s no secret that over the past two decades, numerous Minnesota residents took advantage of the booming housing market by taking out second and third mortgages on their homes, which had skyrocketed in equity.
It’s no secret that over the past two decades, numerous Minnesota residents took advantage of the booming housing market by taking out second and third mortgages on their homes, which had skyrocketed in equity. However, following the housing crisis of 2007 and 2008, many individuals found themselves not only underwater on their mortgages, but out of a job and with little savings to make up the difference.
Though the United States has steadily been climbing out of that financial hole, millions of Americans are still struggling with issues stemming from the recession, including depressed home values and depleted savings. If a life event has caused you to miss payments on multiple mortgages, a Washington bankruptcy attorney can advise you on how Chapter 13 bankruptcy may be able to help make your home more affordable.
In Chapter 13 bankruptcy, individuals who have second and third mortgages on their properties can argue to strip them from their secured debts. In so many words, this means that these additional debts will be transferred to your unsecured assets.
During Chapter 13, you propose a monthly payment plan based on what you can afford over three to five years. Once approved, all of your creditors for unsecured debts receive a portion of your monthly payment to the bankruptcy trustee. Your second and third mortgages will become part of this pool of creditors.
At the end of the payment plan, the remainder of your debts are discharged, and you are no longer liable for payments to those creditors.
The professionals at Atlas Law Firm are experienced in helping homeowners avert foreclosure and take their homes back into their own hands. If you are struggling financially, we can provide you honest advice and guide you through the bankruptcy process.