Dealing with Chapter 13 Bankruptcy

Bankruptcy is looming on the horizon and Chapter 13 is beginning to look really good, but no one wants to give up the house.

Using Chapter 13 will allow those facing bankruptcy to stop
foreclosure and save their homes. In fact, Chapter 13 protects equity
in the home, helps balance the mortgage default, and helps get rid of
other crushing debts.

Things seem to have come full circle in the mortgage industry,
swinging from a once booming economy to a recession. Many people recall
mortgage lenders used to offer really low adjustable rate mortgages, no
money down mortgages, and 100% to 110% mortgage loans. Gone are those
days.

Nowadays adjustable rate mortgages have increased from roughly 5% to
over 10% depending on who the lender happens to be. Homeowners are
faced with suffocating mortgage payments virtually double what they
used to be. As interest rates rise, so do the mortgage payments.

Unfortunately, the real estate market is also very soft right now
which means homes have not appreciated any in value, not like they used
to. They also don't give homeowners any leeway to refinance and use
their equity. As this situation keeps spiraling out of control, Chapter
13 bankruptcy begins to look very attractive.

"Homeowners may file Chapter 13 that would allow them to catch up
with their mortgage payments – interest free," explained Jay Fortier of
The Law Office of Jay F. Fortier, P.C., in Chicago, Illinois. Fortier
has extensive experience in this area and knows what homeowners are
going through when they are faced with rapidly escalating mortgages
payments and no extra money to pay them – even if the family works.

Chapter 13 will allow the homeowners to consolidate other financed
items (other debts) and in the process, wind up actually saving some
money on the interest rates. This break often means the family is able
to carry their debt load with dignity and be able, in the long run, to
keep up payments.

While Chapter 13 is a viable option in this day and age, the other
route consumers may opt for is consolidating credit card debts, medical
bills and other loans. In some instances they may wind up only paying
back about 10 cents on the dollar. "It's an attractive option, and one
I explain to my clients," added Fortier.

To speak with a Chicago bankruptcy lawyer or to learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.