Bankruptcy And Mortgage Modification
Chapter 13 bankruptcy, want to end plan?
I want to end my chapter 13 plan after being in it for 3 years. They want to extend it for 60 months (2 more years). I want to talk to my mortgage company about a loan modification to roll my arrears into my loan. I want to deal with my bank directly and dismiss my chapter 13 plan all together. Can someone tell me is this a good idea or not? My attorney warns me not to do it, but he’s getting paid through the plan also. Help me before I make a decision.
You are entitled to do this if you want, but that does not mean it is a good idea.
You will lose ALL bankruptcy protections you’ve had for the past three years. Any debts that have not already been paid in full will be in default the moment your bankruptcy is dismissed. Creditors who were calling you (and those who weren’t…) prior to filing your bankruptcy will be entitled to call you, harass you, and sue you – the moment your bankruptcy is dismissed.
Your bankruptcy attorney is NOT making any more money by having your bankruptcy extended. The bankruptcy attorney’s fee is usually paid out of the first 3-5 months worth of plan payments and after that the attorney receives no additional payments unless a new fee agreement is entered into for additional legal work.
If you aren’t certain whether your attorney is giving you good advice, get a 2nd legal opinion from another bankruptcy attorney in your local area — in person … NOT from anonymous total strangers on the Internet!
Jacksonville Bankruptcy Attorney: Bankruptcy and Mortgage Modification
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