Bankruptcy doesn't have to be something bad.
It can actually be the start of something good.
Your situation is unique, and it's personal.
Your attorney should be as well.

Mortgage Modification Rejection

For many homeowners, especially those still struggling to recover from the impact of the housing market downturn, mortgage modification is an ideal way to solve some of their financial issues while maintaining ownership of their home. However, not all proposals for a mortgage modification are approved by the lending entity. When this occurs, it can leave homeowners in a precarious situation, with no way to make their mortgage payments and at risk of losing their home. Fortunately, there are still options available that can help a family keep their home.

If you or someone you know has had a mortgage modification request rejected by your creditor, you should consider filing for Chapter 13 bankruptcy as a way to keep your home. Contact Birmingham bankruptcy attorney Paula Greenway today at (205) 324-4000 to speak with a qualified legal professional about the details of your situation and learn more about whether bankruptcy may be right for you.

Benefits of Bankruptcy after Mortgage Modification Rejection

When a homeowner’s mortgage modification plan is rejected, they may face foreclosure on their home. However, by pursuing Chapter 13 bankruptcy protection, their most important assets, including their home, can be protected against foreclosure. This is one of the primary benefits of filing for this type of bankruptcy after mortgage modification rejection. Other important benefits include:

  • Reduced loan repayment plans
  • Protection from asset forfeiture
  • Limited debt discharge

Furthermore, the damage to an individual’s credit score that a Chapter 13 bankruptcy can cause is often not as significant as home foreclosure would be. While Chapter 7 bankruptcy allows a person to exempt up to $5,000 of home or real property and $3,000 for any property (wildcard exemption), this is only useful for those who owe less than $8,000 on their home. Thus, for all of these reasons, Chapter 13 bankruptcy may be the best available option following a rejection of a mortgage modification plan.

Contact Us

If you or someone you know has had a mortgage modification plan rejected, we can help you explore your best options for keeping your home. Contact Birmingham bankruptcy lawyer Paula Greenway at (205) 324-4000 today to discuss the details of your situation and learn more about your rights and options under the law in these difficult circumstances.

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Greenway Bankruptcy Law, LLC
505 20th St N #1220
Birmingham, AL, 35203
Phone: (205) 324-4000
Tuscaloosa: (205) 737-3350
Gadsden: (256) 467-6650

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Greenway Bankruptcy Law, LLC All rights reserved. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. The following language is required pursuant to Rule 7.2, Alabama Rules of Professional Conduct. No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

Greenway Bankruptcy Law, LLC 505 20th St N #1220, Birmingham, AL, 35203 | Phone Number: (205) 324-4000 |  Directions | Paula Greenway+