Loan Modification Through Bankruptcy
Work with Skilled Bankruptcy Lawyers Serving Gwinnett County
Are you struggling to pay off a loan with high monthly payments and an unreasonable interest rate? You may be considering bankruptcy, but you’re not sure whether this will solve your financial issues. At Schuyler Elliott & Associates, Inc., we can address all your concerns about bankruptcy and your loan modification options. We will only recommend strategies we believe to be in your best interests, assessing both your short- and long-term goals in the process. Financial adversity can be overwhelming in many ways, and we are here to alleviate the stress and provide you with a path toward a better future. If you are in Gwinnett County, reach out to our firm today to begin a free initial consultation!
To learn more about loan modification through bankruptcy, contact us online or call (770) 400-9102. Your initial consultation is free of charge! Our Gwinnett County bankruptcy attorneys are ready to answer your questions -- call today!
Which Types of Bankruptcy Can Modify Your Loan?
The way a bankruptcy court will handle your loan depends largely on the type of bankruptcy you file. The following is a brief overview of your loan modification options within the most common types of bankruptcy.
- Chapter 7. Chapter 7 bankruptcy generally does not offer loan modification options. The trustee liquidates your nonexempt assets to repay creditors, and any outstanding debt will most likely be discharged. Unless you can continue making payments, you may lose the property attached to the loan.
- Chapter 13. Through Chapter 13, you may qualify for a lien stripping or cram down. Lien stripping can remove a second mortgage from your property if you owe more than the value of the property. A cram down is when the amount you owe is “crammed down” to the actual value of the property. You may also be able to negotiate a loan modification with your lender, so long as this modification is approved by the bankruptcy court.
- Chapter 11. As with Chapter 13, you may be able to modify your loan through Chapter 11 bankruptcy. One recent development in Chapter 11 involves Subchapter V, which can allow small businesses to modify the mortgages of their principal residence. The mortgage must have been acquired in connection with the business, rather than simply to pay for the residence. This type of modification is not available in Chapter 7 or 13.
Modify Your Loan with Experienced Bankruptcy Attorneys Serving Gwinnett County
Our team at Schuyler Elliott & Associates, Inc. can quickly assess your situation and determine what loan modifications you may have at your disposal. To obtain the best possible modification and derive maximum benefits from bankruptcy, we urge you to get in touch with us at the beginning of your debt-relief process.
Call our Gwinnett County loan modification attorneys at (770) 400-9102 or online.
We look forward to helping you regain control over your finances as quickly
as possible.
