Get it straight here, if you are facing foreclosure or loss of your home then filing Worcester bankruptcy can actually help you. You may or may not know that filing a Chapter 13 bankruptcy remains as an effective way to save your home from foreclosure. Moreover, filing chapter 13 Framingham Bankruptcy also offers you 3 or 5 years buffer time to catch up on the past due mortgage payments that you are behind.
Remember, bankruptcy court usually has no authority of lowering down your monthly mortgage payment and also has no authority to change the terms of your loan or mortgage. In fact bankruptcy filed under chapter 13 will only work for you if you have regular monthly income. The idea is however simple. Once you file Springfield Bankruptcy under the above mentioned chapter, you will require legally to start making your regular mortgage payments to your lender, plus and extra payment to catch up on the past due mortgage payments. This extra monthly payment will be paid to the Chapter 13 Trustee, who will keep track of your payments and pay off your creditors over the 3 or 5 year timetable.
Okay, let’s understand the whole scenario with an example. Let’s assume that your regular mortgage payment is $1,000 per month and that you are 6 months behind. Let’s also assume that your bank has hired attorneys, which you will have to pay for because you agreed to that when you signed your mortgage and promissory note. As an obvious result the total fees you now owe your bank is around $3,000 to $5,000. Now at this stage if an auction of your home has been scheduled, you will also have to pay for the auctioneer and advertising fees. So, it’s coming up to let’s say around $6,000 for past due mortgage payments plus $3,000 in legal fees, for a total past due amount of $9,000. In such cases, the Boston bankruptcy court will make you repay that $9,000 while dividing the payments up over 3 years or 5 years. It means, each month you will pay your $1,000 mortgage payment to the bank and also need to pay an extra of $250 each month to catch up on your mortgage. It is also pertinent to mention here, if you keep on missing payments schedule, the bankruptcy court may simply dismiss your case which means bank can then auction your home.
Chapter 13 plan also works if you are behind on car payments, SUV payments, boat , truck, camper or RV payments. Natick Bankruptcy filed under Chapter 13 has some other benefits for people, depending on their individual circumstances and one of the most helpful benefits is that with this you can get rid of a second mortgage off your house and you will never have to pay it again. In legal terms this is “strip off”
One more advantage of Chapter 13 is that is protects co-signers on your accounts because they will receive the same bankruptcy court protection, which you do! However this is just a brief overview of certain aspects of how Chapter 13 bankruptcy works. Keep in mind, bankruptcy law is pretty complicated hence you need to rely on the experienced bankruptcy attorney in order to get a fresh start!
Massachusetts Bankruptcy Center 