Hoffman Estates Bankruptcy Attorney and Chapter 13

Hoffman Estates bankruptcy attorney states that mortgages are handled through a bankruptcy in a couple different ways.  If you are up to date on your mortgage payments, then you just simply make your mortgage payments despite filing either a Chapter 7 or a Chapter 13 bankruptcy case.  If, on the other hand, you are behind on your mortgage payments, you need to either catch up in a Chapter 7 or repay over the next three to five years the part that you fell behind in a Chapter 13 bankruptcy case.   

If you do have significant assets, then you might want to consider Chapter 13.  Chapter 13 allows you to keep all of your assets free and clear, provided you make a payment plan of all of your disposable income for the next three to five years, whereby you pay either all or a percentage of your debt over time.  Chapter 13 is most common to save a home that’s in foreclosure.  Chapter 13 allows for the repayment of mortgage arrears over the next three to five years.  Now, during that three-to-five-year payment plan, you must continue to make your current first and/or second mortgage payment on time.  If you fail to make your current mortgage payment or if you fail to make the trustee payment, then your Chapter 13 case will be dismissed or the stay will be modified.   

A seasoned bankruptcy attorney will be able to guide you not only in the bankruptcy process but in your life after bankruptcy.  I help my clients rebuild their credit on their own.  I advise my clients to pull their three credit bureaus immediately after filing a bankruptcy to ensure that the information contained on that credit report is accurate.  If something is not accurate, I advise my clients to dispute that online in writing with the credit bureaus.  The credit bureaus will then try and investigate the validity of the debt with the credit issuer.  If there is not verification coming back within 30 days to the credit bureau, then that information must be removed by law.  Thus, an individual can help improve his or her own credit by taking some positive steps on their own after filing for bankruptcy.  You do not need to pay an outside company any money to do what you can do on your own.