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Category: Bankruptcy

5 Possible Loan Modification Options for Your Mortgage

Sometimes bankruptcy isn’t the right option for people, but they still want to save their home from foreclosure. For those in this situation, a loan modification might be the best choice.

loan modificationPeople can apply for a loan modification on their first and second mortgages, especially if they’re behind in their payments or if their interest rate is higher than the market rate.

However, your income and delinquency can come into play for loan modification eligibility. It’s important to hire an attorney to help you through the process.

Attorneys are necessary for the loan modification process because mortgage companies need to agree to participate in the program.

They are rarely concerned about your best interests, and therefore you’ll most likely receive the run-around when trying to communicate with them.

Having an experienced lawyer on your side to aggressively fight for you is critical to success. Once your lender or mortgage company agrees to modify your loan, there are five ways they might lower your payment:

1) Lowering your interest rate

2) Extending the term of the mortgage/loan (loan extension)

3) Placing your arrears at the end of the loan

4) Reducing the balance due on the mortgage (this is rare)

5) Putting arrears on the back of the loan, which allows you to pay your arrears once the rest of your payments are met.

Talk With Our Experienced Loan Modification Attorneys in NJ

This article should not be taken as official legal advice. If you’re considering a loan modification or another legal option, you need to consult an attorney for guidance. If you’re in New Jersey and seeking legal assistance, we can help you.

Brenner Spiller & Archer, LLP is a New Jersey law firm that is dedicated to helping families find relief from the burden of debt and other financial woes. For more than 35 years, our lawyers have provided effective guidance on all debt relief matters to clients throughout Central and South Jersey.

Schedule Your Free Consultation Now!

filig for bankruptcy credit score

12 Pros And Cons Of Filing For Bankruptcy

Maybe you haven’t been disciplined on your spending habits. Perhaps you have fallen on bad luck after a flow of unforeseen expenses or you have unexpectedly lost income. Filing for bankruptcy may not be an ideal step in your life, but it may save you from a seemingly endless amount of debt.

Filing for personal bankruptcy won’t rescue you from all of your troubles, and it won’t ruin your life forever. Sometimes, the pros and cons can weigh out pretty evenly.

6 Pros of Filing for Bankruptcy

If bankruptcy really was the worst of the worst, there wouldn’t be so many advisors and lawyers trying to help your credit score get back to what it once was. Here are a few ways filing for bankruptcy can help:

1) You may see your credit score improve soon after filing. Bankruptcy details vary per person, but because you are relieved of paying back certain debts, your credit score won’t have those missed payments to measure against.

2) You may be able to obtain new lines of credit within 1 to 3 years. Though your interest rate will be significantly higher on new lines of credit after a bankruptcy, credit can become available if your financial plan is followed.

3) You may find a reason to discover new spending habits. If poor spending habits were the reason for falling into debt in the first place, bankruptcy could be a big wakeup call to get your financed in order.

4) A judge will issue an automatic stay, which bars creditors from collection attempts.

5) You won’t be able to be fired from a job solely for filing for bankruptcy.

6) Your home and car are usually protected from seizure.

6 Cons of Filing for Bankruptcy

Of course, there will be some disadvantages to bankruptcy. Just know that if you can get through the worst of it, your credit score may get back to what it once was in a shorter amount of time.

1) Filing can cause your credit score to fall. Bankruptcy isn’t just a clean slate to start from. Your credit score will likely fall significantly, though by how much is unique to each financial situation.

2) Your bankruptcy will be public for many years. Lenders will be able to see your bankruptcy for ten years (if you file for Chapter 7 bankruptcy) or seven years (if you file for Chapter 13 bankruptcy).

3) It can be difficult to get a mortgage. If you do not currently have a house or mortgage, it can take several years before obtaining a new mortgage.

4) You may lose some property if it’s defined in the bankruptcy agreement.

5) Bankruptcy does not exempt you from student loan debt.

6) You will still need to pay alimony and child support.

This article should not be taken as legal advice. If you’re considering bankruptcy or another legal option, you need to consult an attorney for guidance. If you’re in New Jersey and seeking legal assistance, we can help you.

About Our NJ Bankruptcy Attorneys

Brenner Spiller & Archer, LLP is a New Jersey law firm that is dedicated to helping families find relief from the burden of debt and other financial woes. For more than 35 years, our bankruptcy lawyers have provided effective guidance on all debt relief matters to clients throughout Central and South Jersey.

Get Your Free Consultation With Our Trusted Bankruptcy Attorneys

4 Benefits of Chapter 13 Bankruptcy

Picture of a petition for Chapter 13 bankruptcyIt’s very common for people to have money problems. You might be surprised to hear that thousands of people file for bankruptcy each year. A couple of the most common forms of bankruptcy are Chapter 7 and Chapter 13.

Many people choose Chapter 7 when they’re open to liquidation, but you might be interested in Chapter 13 bankruptcy for these reasons:

1) Filing for Chapter 13 can help you to stop foreclosure proceedings and save your home. Yep, that’s true even if you’re not current with mortgage payments.

2) You can pay back your outstanding debts over an extended period (usually between three and five years). Once the payment plan is concluded, the debt you owe to your creditors will be discharged.

3) You will only be required to pay back certain debts. These include income taxes and mortgage arrears. However, credit cards, medical bills, and other debts might be wiped out.

4) Mortgage lien stripping may allow you to “strip off” a second or third mortgage or “cram down” an unreasonable car loan.

This article should not be taken as legal advice. If you’re considering bankruptcy or another legal debt relief option, you need to consult an attorney for guidance. If you’re in New Jersey and seeking legal assistance, we can help you.

Brenner Spiller & Archer, LLP is a New Jersey law firm that is dedicated to helping families find relief from the burden of debt and other financial woes. For more than 35 years, our bankruptcy lawyers have provided effective guidance on all debt relief matters to clients throughout Central and South Jersey.

Schedule Your Free Consultation With Our Trusted Bankruptcy Attorneys

A Loan Modification Could Save Your Home


This is a strange and frightening time. COVID-19 has disrupted everything and brought a level of uncertainty we’ve never seen before. Maybe your hours or salary have been reduced dramatically. You may have even lost your job entirely. How will you pay your mortgage? 

You could try a forbearance, which would defer your payments, but that’s only a band-aid solution that won’t help you long-term. Filing a Chapter 13 bankruptcy could help, but maybe you’re not ready for that option. In this case, the best opportunity may be a loan modification, which may stop foreclosure and alter the terms of your mortgage.

4 Potential Options for Modifying Your Mortgage or Loan

You may be able to modify your loan in a few different ways:

  1. Lowering your interest rate
  2. Extending the term of the mortgage/loan (loan extension)
  3. Placing your arrears at the end of the loan
  4. Reducing the balance due on the mortgage (this is rare)

If you’re behind on your mortgage and facing foreclosure, you have the right to request mediation to deal directly with your mortgage company. However, mortgage companies are rarely looking out for your best interests. The process is frustrating and labor-intensive, but an attorney can take the burden off of your shoulders.

Get Help From Our New Jersey Mortgage Modification Lawyers

Having an experienced, caring attorney on your side can increase your chances. At Brenner Spiller & Archer, LLP, our bankruptcy lawyers are skilled and aggressive negotiators who have experience working with mortgage companies, banks, and creditors.

We provide friendly, caring, and affordable legal services. We serve clients throughout central and south Jersey with offices in Collingswood, Mount Holly, Vineland, and Freehold. Due to COVID-19, we are currently meeting with clients virtually.

Call 856-963-5000 Now or Click Here to Schedule Your Free Consultation

What Does A Bankruptcy Lawyer Actually Do?

What Does A Bankruptcy Lawyer Actually Do?

Unless you want to take on the feat of filing for bankruptcy on your own, you’ll need a bankruptcy lawyer. But what do bankruptcy lawyers specifically do for you? A lot, it turns out. Take a look at how your lawyer helps you file for bankruptcy.

Advice

Before you even start any bankruptcy activities, your lawyer will give you good advice on what to do. Many lawyers give a free initial meeting to determine the best option for you. They may even suggest something other than bankruptcy, which may be debt consolidation or a financial advisor.

If they do recommend bankruptcy, they’ll help you decide between Chapter 7 and Chapter 13 based on your unique situation.

Bankruptcy lawyers know all of the rules and expectations that go along with the bankruptcy process, so you know you’re in good hands.

Take Care Of The Steps

When you and your lawyer begin the bankruptcy process, they’ll help with the steps and long do-to list that might be too difficult to take on your own:

  • They help you decide the official filing date
  • They collect info from you (tax returns, paycheck stubs, etc.)
  • They file your case with the court

Prepares Paperwork

Bankruptcy forms and paperwork can get pretty lengthy, but your attorney will take care of it with your help. You’ll have to provide info about your job and what you own.

Your lawyer will then run that info through a computer program and have everything ready to go.

Attends Meetings

There are several meetings and hearings that take place during the bankruptcy process. You’re required to go the first hearing with your creditors, but only your lawyer will need to attend most (if not all) of the meetings after that.

Your Communicator

Maybe most importantly, your lawyer acts as your communication between you and the courts. They’ll be on the phone and in email interactions with trustees, creditors, as well as keeping you up to date on what’s happening with your case.

Get A Free Consultation With A NJ Bankruptcy Lawyer Today

This article should not be taken as legal advice. These are only a few things attorneys handle. If you’re considering bankruptcy or another legal debt relief option, you need to consult an attorney for guidance. If you’re in New Jersey and seeking legal assistance, we can help you.

Brenner Spiller & Archer, LLP is a New Jersey law firm that is dedicated to helping families find relief from the burden of debt and other financial woes. For more than 35 years, our bankruptcy lawyers have provided effective guidance on all debt relief matters to clients throughout Central and South Jersey.

Click Here to Schedule a Free Consultation With Our Trusted Bankruptcy Lawyers

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