There are no mechanisms in bankruptcy that would force a mortgage company to modify the terms of their note. They have a contract, you signed on the line, you agreed to pay, they agreed to give you the money. There’s no mechanism in the bankruptcy code that forces a creditor to do that. However, what we found in this climate, in this economy, that mortgage companies are coming forward and they’re offering clients deals, whether it be a 7 or 13, to modify and to try to keep that debtor in that home.
The Emotional Toll of Bankruptcy on Families
Bankruptcy is a difficult and often emotional experience for anyone, but when families are involved, the impact can be particularly challenging. The financial strain, uncertainty about the future, and the stigma associated with bankruptcy can take a severe toll on the...