How Does Bankruptcy Affect my Mortgage in Queens?
Since a mortgage is a secured loan that uses your home as collateral, filing for Chapter 13 bankruptcy actually has little direct effect on whether you get to keep your home. You typically have no risk of losing your home as long as you can keep your mortgage payments current.
However, according to Bankrate, Inc., a leading aggregator of financial rate information on the web, filing for bankruptcy can potentially affect a mortgage modification if the lender has not finalized it prior to filing for bankruptcy. By waiting to file for bankruptcy until you have full confirmation of the finalization of the modification, the modified rate and other terms continue to apply during and after bankruptcy, as long as you continue to make payments. If you do not receive finalization of a loan modification prior to filing for bankruptcy, the lender may not complete the deal, returning your mortgage to its original terms.
Everyone has unique circumstances behind filing for bankruptcy. Therefore, the best way to learn about the potential effects of filing for bankruptcy on your mortgage and other financial concerns is to retain a Queens bankruptcy attorney with extensive experience with situations similar to yours. Your lawyer can review the most appropriate options to help you achieve financial freedom — from choosing between Chapter 7 and Chapter 13, to using an available non-bankruptcy debt relief option.
The Mark E. Cohen, Esq. conducts a thorough analysis of your specific circumstances to help ensure you take advantage of the most appropriate options.