We are bankruptcy attorneys located in Middletown, Ohio. We specialize in Chapter 7 and Chapter 13 bankruptcy.
I AM CURRENT ON MY HOUSE
If you are current on your home, but are struggling with other debts, such as credit cards and medical debts then a Chapter 7 bankruptcy would be good for you. In a Chapter 7 you would be able to keep your home and wipe out all of your unsecured debts. You would continue to make your house payment throughout the bankruptcy process and keep your home.
The next decision to make after filing for Chapter 7 is if you will reaffirm the debt on your home. A reaffirmation agreement is a document that you can sign that you promise to repay the debt that you owe. Signing this reaffirmation agreement also guarantees that this debt will report your payments to the credit reporting agencies going forward. There are pros and cons to signing the reaffirmation agreement on your home. The pros include that they will report your payments to the credit reporting agencies, that they will work with you on loan modifications and will send you your monthly statements. The cons to signing the reaffirmation agreement is if you do get into difficult times again and cannot make your house payment, they can then foreclose on your home and hold you responsible for the debt owed. If you decide not to reaffirm your home there are also pros and cons to this decision. The pros are that even if you do get into difficult times again and cannot make your house payment that they can still foreclose on your home, but you will not be responsible for the debt. The cons are that they will not report your payments to the credit reporting agencies, will not work with you on loan modifications and may not even send you statements going forward. This is not a decision to be taken lightly and should be discussed with the attorney as to your individual situation.
I AM BEHIND ON MY HOUSE PAYMENTS
If you have fallen behind on your house payments you have several options. First you must decide if you wish to keep the home or let it go. If you decide that you do not want to keep your home you can file Chapter 7 and let your home go through the case. Your home will still go through the foreclosure process and eventually be out of your name. You will be able to stay in your home until the end of the foreclosure process, thus giving you time to save money to get a new place. You will not be responsible for the debt owed on your home as it will be discharged through the Chapter 7.
If you decide that you would like to save your home Chapter 13 would be available for you. A Chapter 13 will force your mortgage company to work with you and allow you to catch up your missed mortgage payments over a 3 to 5 year period. You may still work on a loan modification if you wish, but filing for a Chapter 13 will stop all foreclosure proceedings. Chapter 13 reorganizes all of your debts and you get to keep your property.
Your mortgage company must comply with the Chapter 13 plan as it is federal law. In the case the Chapter 13 Trustee will make your regular mortgage payment and all of you arrears in the 3-5 year period for you. You will simply mail in one payment to the Trustee and all of your debts will be paid out of this payment. At the end of the case the Trustee will file a notice that your mortgage payment is current. This is good because the mortgage company cannot come back on you later and say you owe more fees.
For more information check out our website at www.middletown-bankruptcy.com
Call your Middletown, Ohio bankruptcy attorney today to set up your free consultation. We offer fair fees and monthly payments plans.