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.
Divorce and Debt: Handling Shared Debts
Divorce is a complex and emotionally challenging process that involves the separation of not only assets, but also debt. Handling shared debt during divorce proceedings requires careful consideration, clear communication, and often legal guidance to ensure equitable...