Don’t Wait to Pursue Options
Well, I’ve got another sad story to tell. I received an email from a person who lost his house and car and now needs to file bankruptcy to eliminate the deficiency balances.
What is unfortunate about this situation is that the person waited so long before contacting us. It is possible that we could have had options to try to help this person before his car and house were taken.
Chapter 13 is a good way to help people who have fallen behind on mortgage payments to get time to get caught up and prevent the mortgage company from taking the property. This person may have been a good candidate for Chapter 13 and if he would have contacted us before his house was foreclosed we might have been able to put together a repayment plan to save his house!
Fortunately, we can still file a Chapter 7 so he doesn’t have to pay back the deficiency balances on his mortgage and car. In case you didn’t know, if the car finance company doesn’t get all of its money under the contract from the proceeds from the auction, the finance company can sue this person for the “deficiency” balance. So, this person would be subject to a double-whammy! The person loses his transportation and still must pay the creditor money. OUCH! The good news is that we can still file a Chapter 7 for him and protect his wages and other property from this creditor’s collection actions.
The bottom line, don’t wait! There may be options available to you that could help you out of a situation before the situation goes from bad to worse. The earlier you contact someone and get information, the more options you may have to help solve your problems! To find out about your legal options, start here.
