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  • Chapter 13 Bankruptcy

    With our vast experience, we evaluate all of our client’s options when trying to help them save their home. One viable option may be a Chapter 13 bankruptcy. In most cases, when filing a Chapter 13 bankruptcy, a debtor receives the protection of the “automatic stay” which will stop any foreclosure lawsuit and prohibits your bank or mortgage servicer from continuing any efforts on their part to collect mortgage payments or repossess on your property. A Chapter 13 bankruptcy plan allows you up to five years to repay your mortgage arrears and other debts, like credit cards or personal loans. The plan, which will have to be approved by the Bankruptcy Court, will detail how you will go about repaying your outstanding debts. A person’s various outstanding debts are then grouped together into one monthly payment, and interest will stop to accrue on most debts, such as credit card debts, as soon as the Chapter 13 bankruptcy case is filed.  You can stay current with mortgage payments going forward you can catch up on the ones you may have missed.

    People who file for Chapter 13 in New York sometimes end up paying back less than they owe. While most secured loans, guaranteed by the pledge of an asset such as a car or a house, must be paid in full, depending on your particular circumstances, you may be able to remove 2nd (or 3rd) mortgages from your property under Chapter 13. More information about his can be found in our Lien Strip article. [link to lien strip article]. Unsecured loans, like credit card debt, medical bills, and personal loans may be eligible for a significant reduction of the amount owed under a Chapter 13 plan. Once the plan is approved by the Court, all creditors must comply with its terms.

    We at the Law Offices of David I. Pankin are ready to answer any questions you might have regarding the ins and outs of saving your home from foreclosure. Our Foreclosure Defense lawyers can help you to craft a repayment plan that will serve your best interests. Please contact our office by phone at 888-529-9600 to arrange for a free, initial consultation,

    We have 3 convenient locations in Midtown Manhattan, Downtown Brooklyn and Melville, Long Island.

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