CHAPTER 13: A GOOD IDEA FOR EVERYONE?

This makes the best sense for people who really, really want this house for the next ten or more years. That's because you get some relief right away, but the big benefit comes after the five years Chapter 13 payment plan is over.

If you plan to move in three or four years anyway, a Chapter 7 bankruptcy is a lot simpler--and then just don't pay the second mortgage. After you are back to good credit, buy a new house and move out.

And because the Obama cram-down failed in the US Senate, this Chapter 13 only helps you if you can afford that first mortgage. But if the second mortgage is what's killing you, this can be a really amazingly good deal.

WHEN SHOULD WE TALK?

If this applies to you, we should get together soon. Email us:

robertweed@robertweed.com

My Chapter 13 paralegal, Lori, will send you our forms, meet with you to collect complete information, and then set you up with a consultation with me. If you provide all your information to Lori, we can spend an hour together on whether this is the smartest thing for you and your family.

We need ALL our forms filled in so we can talk seriously about things like, how much will I have to pay to the court? I won't be able to tell you exactly because you never know for sure what's going to happen when you get in front of a judge; and also because the two judges here in Northern Virginia each see things a little differently from each other. But if I have complete information on you, I can give you my best estimate.

We'll also talk about how much all this will cost and how you can arrange to pay it. (Legal fees will be around $4500; court costs are $323; and you'll need to pay for an appraisal and a title report.)

Robert Weed

I'm Robert Weed, a Virginia bankruptcy lawyer and a Federally designated debt relief agency. I help people file for bankruptcy.

 

Bankruptcy is a last resort, but you and I can use it to save your house if ALL these factors apply to you:

 


  1. You have a BIG second mortgage (about $75,000 to about $200,000.)
  2. The value of your house has fallen A LOT. Your house is now worth LESS than you owe on your first mortgage.
  3. You are committed to KEEP THIS HOUSE for ten years or more. For example, your children are eight and five years old, and you picked your neighborhood because of the middle school and high school the kids will attend.
  4. You have to DO SOMETHING. You can't afford both mortgages and unless you get help somewhere, you are going to lose everything.

If all those apply to you, you are the best candidate for a Chapter 13 personal reorganization. In a Chapter 13 personal reorganization, you have to make a monthly payment to the bankruptcy court for five years (maybe three years but usually five) and then the second mortgage is completely gone from your house. That monthly payment (all the court thinks you can afford, according to the complicated formula in the 2005 bankruptcy law) covers the 2nd mortgage, the credit cards, and most tax problems for usually a lot less than you are paying for all that now. You have to pay the first mortgage (Obama's proposal to let the bankruptcy court reduce the first mortgage was defeated in the Senate). And you have to eat and keep the electricity on and all that. We may be able to save you a little on the car payment.

ARE YOU READY TO KNOW MORE?

You can call my office and schedule a free appointment. Our main number is: 703-335-7793. You can email me at robertweed@robertweed.com. You can find out more about me on my bankruptcy website www.robertweed.com.

I talk to four or five people a week who are in a situation like yours. One or two decide a Chapter 13 is the way to go; a few more go Chapter 7 and plan to buy a different house when they get back to good credit; some decide to handle their problem without help from the bankruptcy court. In each case, we try to talk it over and lay out all the options to make the best choice.

Bankruptcy is all I do--and we have helped twelve thousand Northern Virginia families get relief under the bankruptcy code. You'll like our friendly service with a smile.

Robert Weed Bankruptcy and Debt Relief