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.
How Bankruptcy Affects Your Family and How to Prepare For It
Facing the prospect of bankruptcy is a challenging and emotionally charged experience that can have significant implications for you and your family. At Klein Law Group, we understand the complexities and sensitivities surrounding financial hardship. In this blog...