When they came to see me in January, Harold and Linda were ten days from foreclosure. Today their mortgage is current and their bad debts are all gone.
Harold had a career change due to medical reasons, lost income, got into credit card debt, had a car repossessed and got behind on the mortgage. He had tried to get a HARP loan mod and had been turned down. (Probably because their debt to income ratio was too high.) This was January 23 and his foreclosure sale was set for February 3.
We filed Chapter 7 bankruptcy on January 29. We stopped the foreclosure and discharged $57,000 in debts. ($30,000 in credit cards and $27,000 repossession.)
Harold and Linda dropped in to see me last Friday, November 15. With their debt to income ratio better–since the debts were gone–and three more months of paystubs on Harold’s new job, they had been able to get a loan mod. Their interest rate had gone from 7% to 4.25. Their monthly payment is $450 less–and they are current.
This is why I love being a bankruptcy lawyer. I help people be happy and debt free.