Chapter 13 Bankruptcy and Loan Modification
A San Jose bankrutpcy attorney responds to an inquiry from a debtor regarding Chapter 13 bankruptcy...
Today, I received an email to our San Jose bankruptcy law firm that read:
We are in the process of going through a Chapter 13 bankruptcy right now, but we still want to do a loan modification as we cannot afford to keep paying our mortgage payment, even through the bankruptcy. Is it possible to do a loan modification even though you are in bankruptcy? What happens if you miss payments in your Chapter 13 plan? Thanks so much for your help!
The response is that you folks are definitely in a tough position. Yes, it is possible to work with your lender in order to work on a loan modification even though you are filing for bankruptcy, however there can be several negative effects. First, many lenders will not work with you if you are making your mortgage payments. If you are making your mortgage payments through your bankruptcy plan, you will have to miss your payments. If you miss your bankruptcy payments, then the court can dismiss your case and you will not receive a discharge. It is definitely a risk that you will be taking for a result that may not be guaranteed. I strongly recommend that you contact an attorney before you make this sort of decision.
If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.
