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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2900
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I am trying to save my house from foreclosure. The reinstatement

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I am trying to save my house from foreclosure. The reinstatement amount is 15,000 we have a personal loan of 8000 we haven't paid on in a couple months trying to catch up our mortgage, I have student loans of approx 17,000 which I didn't make the payment this month and am trying to do a modification with my mortgage company for the past three months and am not seeming to get anywhere. I keep getting letters from them about the right to proceed with foreclosure at any time even if we do get the modification, which they said could take up to a year or so, and they can forclose any time during that period. Is some type of bankrupsy an option to keep our house?
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Terry L. :

Hi and thank you for your question. In the future, you can request me to answer any further questions.

Terry L. :

Yes, Chapter 13 can help you.

Terry L. :

Ch13 is a debt repayment plan. In it, you can cure the default on the mortgage over the next 3-5 years.

Terry L. :

It will also pay back any other secured debt, like a car note, and pay off the consumer debt anywhere from 10% -100% based on your income and assets.

Terry L. :

The student loan unpaid balance will remain, which you can then repay after the case.

Terry L. :

The foreclosure process must stop instantly once you file the case. Many of my clients continue to work on the loan modifications during the case and you can bring a motion in the case for it's approval as well.

Terry L. :

Thanks for your question, good luck to you.

Customer :

What would I have to do first to do a chapter 13?And what exactly is consumer debt? Credit cards?

Customer :

Would our best course be to get a bankruptcy lawyer to do the details that would probibly baffle us?

Terry L. :

consumer debt is credit cards, medical etc.

Terry L. :

Yes, it would be advisable to meet with a local bankruptcy lawyer.

Terry L. :

Most offer free consultations.

Terry L. :

You'll need to get together 6 months of income, last 4 years of tax returns.

Terry L. :

You will need to complete a credit counseling course (can be done online) before you file as well.

Terry L. :

the attorney will help calculate what your monthly payment will be .

Terry L. :

As long as you file before a sale date, you can stop the foreclosure.

Terry L. :

Do you have any further questions?

Terry L. :

if you do, let me know. thanks

Customer :

Will ch 13 affect student loans for my kids? Two will be graduating high school in 2012 and plan to go to college and one in 2014.

Terry L. :

Are you asking about parent loans? or for the children applying themselves?

Terry L. :

if you wish to incur debt during the case, you need approval from the court by motion, so for a parent loan, yes it is an issue.

Terry L. :

it won't affect them applying themselves.

Customer :

Thank You!

Terry L. and other Bankruptcy Law Specialists are ready to help you