Loan Modifications in Utah
Facing foreclosure or struggling to keep up with your mortgage payments can be incredibly stressful. You may be exploring options like loan modifications to make your payments more manageable. But what happens if you’re also considering bankruptcy? Can these two processes work together?
At Rulon T. Burton & Associates, we understand the complexities of both loan modifications and bankruptcy. Here’s what you need to know:
What Are Loan Modifications
A loan modification is an agreement with your lender to change the terms of your existing mortgage to make your payments more manageable. This could involve a variety of changes, such as reducing your interest rate, extending your repayment period, or even forgiving a portion of your debt. This can be a helpful option if you’re experiencing a temporary financial hardship, but anticipate being able to afford your mortgage payments in the future with more favorable terms..
How Loan Modifications and Bankruptcy Interact
The relationship between loan modifications and bankruptcy can be complex. If you’re considering Chapter 7 bankruptcy, pursuing a loan modification is generally difficult. This is because in Chapter 7, your assets are placed under the control of a bankruptcy trustee, making it challenging to negotiate new terms with your lender.
However, Chapter 13 bankruptcy can provide a more favorable environment for obtaining a loan modification. When you file for Chapter 13, an automatic stay goes into effect, which temporarily halts foreclosure proceedings. This gives you valuable time to negotiate with your lender and potentially modify your loan. Furthermore, the bankruptcy court can actually approve a loan modification as part of your Chapter 13 repayment plan, offering a more structured path towards keeping your home.
Why Choose Rulon T. Burton & Associates?
Navigating the intersection of loan modifications and bankruptcy requires experienced legal guidance. Our team at Rulon T. Burton & Associates can:
- Assess your financial situation: We’ll help you determine if a loan modification, bankruptcy, or a combination of both is the right solution for you.
- Negotiate with lenders: We have experience working with lenders to secure favorable loan modification terms.
- Guide you through the bankruptcy process: If bankruptcy is the best option, we’ll handle all the paperwork, court appearances, and legal complexities.
Don’t face these challenges alone. Contact us today for a free consultation to discuss your options and get the debt relief you deserve.