Jacksonville Bankruptcy Lawyer Blog
Bringing your mortgage current though Bankruptcy in Jacksonville, FL might be a possibility. But you must first take into account your income, how far behind you are on you mortgage payments, as well as all of your other debts. Bringing your mortgage current through Bankruptcy in Jacksonville, FL is a three to five year commitment that comes with its own challenges.
In order to bring your mortgage current through Bankruptcy, you must first file a Chapter 13 Bankruptcy even if you qualify for a Chapter 7 Bankruptcy. A Chapter 13 Bankruptcy is a reorganization of your debts through a 60 month payment plan; referred to as a Chapter 13 Plan. Based on your income and family size, you make payments to a trustee. The trustee then distributes these monthly payments proportionally to your creditors. Whichever debts have not been paid off at the end of the 60 months are discharged.
Bringing your mortgage current through Bankruptcy in Jacksonville, FL requires you to start making your regular monthly mortgage payment through your Chapter 13 Plan. Not only do you have to immediately start paying your normal mortgage payment again, you also have to pay a portion of your past due payments each month.
For example, before falling behind on your mortgage, your payments were $1,200.00 per month. You are now 15 months behind on your mortgage payments at the time you file a Chapter 13 Bankruptcy to bring your mortgage current. Your Chapter 13 Plan would require you to pay your $1,200.00 mortgage payment plus an additional $300.00 in arrears. Your Chapter 13 Plan will also include a trustee fee and an additional amount to your unsecured creditors based on your monthly income and family size.
Your income and how far behind you are on your mortgage payments will determine if bringing your mortgage current through bankruptcy in Jacksonville, FL is actually an affordable option for you. While a Chapter 13 Bankruptcy does give you the option to bring your mortgage current, it can be very difficult and not always an affordable option. If you are extremely far behind on your mortgage payments, your Chapter 13 Plan Payments might be too much for you to afford.
For example, prior to filing a Chapter 13 Bankruptcy, your mortgage payments were $1,200.00, but you were 36 payments behind. Your Chapter 13 Plan would include your $1,200.00 mortgage payment and $720.00 in arrears. Your Chapter 13 Plan would be almost $2,000.00 prior to adding the trustee’s fees and any other additional amount required by your income and family size. Potentially making your Chapter 13 Plan unaffordable.
This is why I always stress to my clients the importance of trying every other option to save their home when they are behind on their mortgage before turning to bankruptcy. Contact the Law Office of David M. Goldman, PLLC today to speak with an attorney who can help you go through all options and help you pick the best option to save your home and bring your mortgage current.