Handling a Chapter 13 Case in Panama City, Florida

Jane Doe is a retired, widowed woman with her adult sister and her adult daughter living with her in Panama City, FL.  The relatives help out when they are able, but their cash assistance is sporadic.  Jane’s income is limited as she receives a retirement from the State of Florida and Social Security Benefits.  She has two mortgages on her Florida homestead totaling approximately $250,000 and credit card debt of approximately $50,000.  Jane has been served with foreclosure papers on her first mortgage due to no payment in over six months.  If she does not take action, then she will lose the house to foreclosure.  In addition, the second mortgage is no longer being paid and the credit cards are all delinquent.  She really wants to save her home even though it only has a value of $165,000, far less than the two mortgages which encumber the homestead.  She knows that it is unlikely that she will ever pay off her house, but she wants to stay there for the rest of her life. What Jane needs is help from a local Panama City bankruptcy lawyer.

Jane is going to file Chapter 13 Bankruptcy with an experienced Panama City bankruptcy attorney.  The Chapter 13 case will allow Lewis & Jurnovoy to stop her foreclosure and force her mortgage company into Bankruptcy Court.  In addition, the Chapter 13 Bankruptcy will also force all of her creditors into the court.  No one will be able to call her or bill her anymore.  We have created a repayment plan for her that will allow her to save the house and get rid of her other debts including her second mortgage.  The first mortgage shall be required to go through the Bankruptcy Court Mortgage Modification Mediation Program in an effort to reduce her payments, create a new mortgage term, lower her interest rate, and bring her back to current.  Since the second mortgage does not attach to any equity in the home above the first mortgage, we are petitioning the Bankruptcy Court to remove it completely as a mortgage against her house and place it in the category with her credit cards.  Last, the Chapter 13 Plan will only propose to pay the credit cards and the stripped off second mortgage approximately 1% of their total debt with the balance being wiped out or Discharged at the end of her 3 year Chapter 13 Plan.

This is a great result. Jane Doe believes that this is a plan that she can live with and that will fit better in her budget.

Working with a Panama City Chapter 13 Bankruptcy lawyer is a powerful weapon in handing your finances.  The law firm of Lewis & Jurnovoy in Panama City, FL can help those in need for filing bankruptcy. Call us today at (850) 913-9110 or visit http://www.LewisandJurnovoy.com to schedule a free consultation.