September 28, 2019 By:
When you file for protection under Chapter 13, you and your attorney will work with all your creditors, including your mortgage lender, to put together a comprehensive “reorganization” plan, which will set forth the agreements for paying off your creditors over a three-to-five-year period. You won’t likely be able to work out a plan that allows you to pay off your mortgage over that period, but you can negotiate a payment that is affordable. Ideally, when the Chapter 13 period is over, you will have paid off other, smaller, debts in full, making it easier to meet your mortgage payment obligations.
The plan that you put together must be submitted to and approved by all your creditors. In addition, it must be approved by the bankruptcy court. Accordingly, you don’t have to worry that your mortgage lender will demand an unreasonable payment. The bankruptcy court will carefully review the proposed plan to ensure that it’s in your best interests.
At the Law Office of Carrie L. Weir, I provide a free initial consultation to anyone with questions or concerns regarding a personal bankruptcy filing. Contact my office by e-mail or call me at 972-772-3083 to schedule a private consultation. With offices in Rockwall, Texas, I represent clients in Heath, Greenville, Lavon, Wylie, Mesquite and Rowlett.