Can I Modify My Mortgage Under Chapter 13 Bankruptcy?

When people are struggling to make their mortgage payments, they may wonder if they can modify the terms of their loans to make them more affordable. The good news is that there is a process available for doing this under Chapter 13 bankruptcy. However, it's important to understand all the implications of taking this step before making a decision. In this article, a debt liquidation lawyer in Panama City Beach, FL, will discuss mortgage modification and Chapter 13 and answer some common questions about the process. 

A Quick Overview of Chapter 13 Bankruptcy 

Chapter 13 bankruptcy is a type of bankruptcy that allows individuals to restructure their debts and create a repayment plan to pay off what they owe over time, usually three to five years. This type of bankruptcy is available for debtors who are not businesses and have a steady income. 

Chapter 13 and Loan Modification 

While Chapter 13 bankruptcy is technically a form of loan modification, it may not be the best option for everyone. If you are still struggling to make your mortgage payments after filing for Chapter 13, you may want to consider applying for a loan modification with your lender. 

A loan modification is a change to the terms of your mortgage that makes the payments more affordable. This can be done by extending the repayment period, lowering the interest rate, or reducing the principal balance. 

Applying for a Loan Modification 

If you want to apply for a loan modification with your lender, you will have to get approval from the bankruptcy court. You will also need to submit a hardship letter that explains your financial situation and why you need a modification. Speak with a mortgage modification lawyer, and they will be able to help you through this entire process. 

Should I Continue with Bankruptcy After I Modify my Mortgage? 

Depending on your case, you may still need to. You should still speak with a bankruptcy lawyer to see if it's in your best interests to continue with Chapter 13 after you modify your mortgage. 

If you are considering bankruptcy or have questions about loan modification, contact the experienced attorneys at Lewis & Jurnovoy today. The consultation is free, and it will help you understand all your options! 

Lewis and Jurnovoy is a local law office serving the Florida Panhandle. We specialize in bankruptcy law, including Chapter 7 and Chapter 13 bankruptcy. We will work to achieve the best financial remedy for your outstanding debts. 

Lewis & Jurnovoy PCB
2714 West 15th St
Panama City, FL 32401    
(850) 913-9110
https://www.LewisandJurnovoy.com