Chapter 13 Bankruptcy Foreclosure in Tallahassee

Residential mortgage foreclosure is one of the main legal issues that encourage consumers to file for bankruptcy protection. In recent years, there has been an explosion in residential mortgage foreclosure filings in Tallahassee. Florida was one of the worst-hit areas by the foreclosure crisis. Residents are finding relief with chapter 13 bankruptcy foreclosure In Tallahassee.

Chapter 13 bankruptcy is still one of the most powerful and effective ways to deal with mortgage foreclosure issues for consumers. A bankruptcy proceeding can be filed up to the date the property is sold. This immediately stops foreclosure proceedings by taking jurisdiction from the State Court and placing it in the U.S. Bankruptcy Court. This allows the foreclosure to be transferred to a Court that can consider the homeowner’s financial situation. Restructuring debt can help homeowners who are unable to manage credit card debts, car payments, home equity payments, medical debt, and regular mortgage payments to avoid losing their homes to foreclosure. A homeowner can save their home using the bankruptcy code if he or she can show that they have the financial ability to pay the mortgage over the next five years, catch up on arrearages over the 5-year period, and make fair payments to any remaining creditors.

Why File for Chapter 13 Bankruptcy?

Many people end up filing for Chapter 13 bankruptcy foreclosure in Tallahassee after their attempts to modify their mortgage have failed. You should know that bankruptcy does not end a consumer’s ability to negotiate a modification to their mortgage. Consumers who file bankruptcy have the right to request that a lender be covered to review their mortgage in order for it to be modified under the HAMP program. Unfortunately, most homeowners in distress are still unable to get mortgage modifications despite the need for them. My observation is that most people who seek modification take months to send and resend paperwork to the mortgage servicer, while their mortgage payments continue to fall behind. Eventually, they were denied any form of modification. Ironically, many people end up facing foreclosure after they are told to stop paying their mortgage payments in order to be eligible for a modification.

If a homeowner is facing foreclosure, they should think about Chapter 13 bankruptcy foreclosure in Tallahassee. If a foreclosure case remains pending and no payments are made on the mortgage debt, the arrearage will grow. The arrearage may include missed payments as well as late fees, interest, attorney costs, court costs, and any other costs or fees related to foreclosure. It may be impossible to make the mortgage current within the five-year limit allowed by Chapter 13 bankruptcy if the amount is too high.

Chapter 13 Should Be Considered Early in the Foreclosure Process

Chapter 13 bankruptcy can also be used by homeowners to consolidate their debt,s get rid of a second mortgage, or discharge associated debts. If the amount of debt on a property is significantly higher than its value, this can be very advantageous. This means that the second or third mortgage must be “unsecured” in order to allow this to happen. The second mortgage must have a lower value than the first mortgage. Because the second mortgage is considered “unsecured”, it means that the property cannot be used to pay the second mortgage’s secured debt. This is called “stripping” the second loan. This type of relief can only be granted in certain circumstances. However, it can make a huge difference for homeowners.

A bankruptcy attorney can help homeowners facing foreclosure. Most bankruptcy attorneys offer free consultations. The filing fees and costs for bankruptcy actions are typically lower than those associated with foreclosure defense.

Contact the Law Offices of Bruner Wright P.A.

Chapter 13 bankruptcy foreclosure In Tallahassee is extremely complex and confusing. It’s important that you choose lawyers with the utmost expertise in bankruptcy to lead you through your case. Bruner Wright P.A. has served the people of the Florida Panhandle for decades now. These years of experience have built up an extremely knowledgeable and professional law firm! There is no bankruptcy case, large or small, we have not gotten our hands-on. Every bankruptcy is unique. It is important to have a communicative and available firm that is able to educate and answer any questions.

Bruner Wright believes that attorneys need to be adept at staying open to communication. Our lawyers are always happy and available to take your questions regarding Chapter 13 bankruptcy foreclosure in Tallahassee! Avoid going with a firm that will just file your bankruptcy case away as a number, choose Bruner Wright P.A. instead today! Contact us for more information regarding your potential bankruptcy!