Chapter 13 Bankruptcy Loan Modification

Reducing Your Monthly Loan Payments

Lenders in the Chicago area have various loan modification programs that can reduce monthly loan payments for financially stressed borrowers. Generally speaking, it is difficult for a borrower to take advantage of them before filing bankruptcy. However, filing bankruptcy gets the attention of lenders. At that point, they often become more amenable to modifying loans. It may sound ironic, but filing bankruptcy can allow you to negotiate new loan terms from a position of strength. The lender may agree to a reduction in the outstanding loan amount, the interest rate, the length of the payback period or some combination of those terms.

Lower Your Mortgage And Car Payments

Chicago attorney Paul Camarena at North & Sedgwick Law can help clients obtain more favorable loan terms during the bankruptcy process. When representing you in a Chapter 13 bankruptcy, he will take full advantage of the situation, seeking to negotiate the most favorable loan terms he can obtain. The extra cash flow you receive from reduced mortgage or car loan payments can make it easier to cover your remaining loan payments and living expenses.

The lender or the bankruptcy trustee may insist that the borrower obtain a reaffirmation agreement. This document reaffirms the existence of the loan and spells out its new terms, if they have changed. Chicago Chapter 13 bankruptcy loan modification lawyer Paul Camarena can handle this and all other aspects of your case.

Helping You Keep Your Property

A Chapter 13 bankruptcy can allow you to keep property you have purchased with a secured loan, provided that you can keep current with your loan payments. Paul Camarena will craft a three- or five-year Chapter 13 repayment plan that is affordable, allows you to make your monthly loan payments and provides you with a reasonable standard of living. You will be able to once again face the future with hope and anticipation instead of fear.

Contact A Chicago Mortgage Restructure Attorney

To schedule a free initial consultation about reducing your mortgage or car payments through a Chapter 13 bankruptcy, contact North & Sedgwick Law.

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†The firm is a debt relief agency and helps people file for bankruptcy relief under the Bankruptcy Code.