Posted by Robert Weed / in Virginia Bankruptcy /

Looking for a bankruptcy lawyer in Ashburn VA?

Hi! I’m Northern Virginia Bankruptcy Lawyer Robert Weed. For more than 20 years I’ve helped people in Ashburn solve their financial problems and get a new start in life. I’m the full time bankruptcy lawyer closest to Ashburn. I’ve helped people file bankruptcy in Ashburn since 1995.  

Ashburn bankruptcy rate–one family in every ten since 2007

Ashburn is in the heart of eastern Loudoun County, Virginia.  Loudoun is the highest income county in America.   The median household income in Ashburn is right at $100,000 a year. 

So you might be surprised that 169 individuals and couples in Ashburn filed bankruptcy 2013.  That means the Ashburn bankruptcy rate was one of every hundred families.  (In 2012, there were more–the Ashburn bankruptcy rate was one of seventy five families!)  Almost one of every ten families in Ashburn has decided to file bankruptcy since the start of the housing crisis in 2007. Are your surprised?  I’m not.

A thousand families in Ashburn and Sterling have gotten a financial new start with my help. I’ve helped nearly one thousand people living in Ashburn and Sterling get a financial fresh start. I know why even people with strong incomes can need to file bankruptcy.

Many people in Ashburn and Loudoun County have good incomes–but it costs a lot to live here.

The average house payment or rent for a family of four is $2967–that the highest of any county in Virginia.  (Four counties in California are higher.  Nantucket is higher in Massachusetts; Manhattan and two adjoining counties in New York cost more.  One county in New Jersey; and that’s about it.)

The high cost of living is one reason the number of Ashburn bankruptcy filings is two thousand total since 2007. Many people in Ashburn have long commutes–some go thirty miles into Washington DC.  Many pay the extra expense of tolls on the Dulles toll road. Most people in Ashburn are homeowners–the ups and downs of the housing market hit hard here. Many families in Ashburn have children, and children are expensive, anywhere.

Many people in Ashburn work for the technology companies in the area.  Those companies depends on Federal government contracts; and budget uncertainty caused many of the contracts–and those jobs–to be cut.

All those factors explain why the rate of Ashburn bankruptcy is higher than you might think.

Ashburn Bankruptcy Q&A

Question:  Will my bankruptcy hearing be at the Loudoun Courthouse in Leesburg? 

Thanks for viewing my Ashburn VA bankruptcy information web page. If you have more questions, you can ask me, here. https://robertweed.com/contact/

Answer: No.  Bankruptcy is a Federal law. The Bankruptcy court for all of Northern Virginia is in Alexandria.  During the covid emergency, you do NOT need to drive to Alexandria for your hearing. They are doing them by telephone.  

Question:  Can a married person file an individual bankruptcy, leaving my spouse out of it?

Answer:  Yes, it’s no problem for one spouse to file an an individual bankruptcy. But, you are required to do a whole family budget. We need your spouse’s paystubs, along with yours. And we need to do an expense budget for the whole family.

High income people have a special challenge getting bankruptcy approved

Higher income people face a special challenge getting approved for Chapter 7 bankruptcy.  The 2005 bankruptcy reform law tries to push all families over the median income into five year Chapter 13 payment plans.  A big majority of families in Ashburn are over the Virginia median income.   But few, when they get into financial trouble, could actually afford a five year Chapter 13 payment plan.  (Most Chapter 13 plans fail.)

I have a lot of experience getting higher income families approved for Chapter 7 bankruptcy.

Five of the twelve highest income counties in America are in Northern Virginia.  I have offices in four of those counties.

I do more high income Chapter 7 bankruptcies than any other lawyer in Northern Virginia.   I work hard to get high income and big families approved for Chapter 7 bankruptcy.  (If Chapter 7 is better for you, which is most cases it is.)

Here’s a comment from Tara, a resident of Ashburn who filed bankruptcy with me in the summer of 2013.  (For hundreds more reviews, you can go here.  And here.)

Tara, from Ashburn…

The thought of having to file for bankruptcy made me extremely nervous and unable to sleep several nights. I thank GOD that a co-worker recommended that I speak with the office of Robert Weed.  

Starting with my initial appointment, in the Sterling Va office, where I met with staff member Ileana Nunez. I felt like a load was lifted off my shoulders. Ileana made my partner and I feel comfortable. She assured us that the process would go smoothly by taking her time to explain everything in detail and answering any and all questions we had. She has no idea how much her patience and understanding meant to me. Ileana and staff member Veronica handled all my paperwork with care, making sure that I received a copy of everything. Ileana even worked on a holiday to assure that my paperwork was submitted to the court quickly to avoid garnishment of my paycheck, which I could not afford to happen. 

During the court proceedings, I felt proud to be represented by Mr. Weed. He is well respected in the court, obviously because he not only carries the title of a professional, but he wears it well.  Thank You Ileana and Mr. Weed for all your assistance and for making an unpleasant situation, a pleasurable experience.

I highly recommend this firm to anyone who finds themselves in need of a bankruptcy lawyer. Do yourself a HUGE favor, make an appointment with the office of Robert Weed. — Tara, of Ashburn, VA

Nick, from Ashburn …

Excellent customer service

Very professional staff. Welcoming and willing to answer all questions and guide me through this difficult time. They came recommended by a friend who used their services a few years back. Happy I decided to retain them. Veronica was exceptionally helpful and knowledgeable. Mr. Weed was detailed and ensured everything was taken care of.  — Nick, of Ashburn VA.

Joel, from Ashburn…

There are no full time Ashburn bankruptcy lawyers.

But bankruptcy is all I do.  And I’m just fifteen minutes away.  You’ll like our friendly service with a smile.

PS Ron from Ashburn “Thanks for getting us back on track”

Ron wrote me one of the nicest letters I’ve received this year.  He wrote to tell me what a difference bankruptcy made in his life.       

Virginia bankruptcy lawyer Robert Weed, in my local law office, 13800 Coppermine Rd, Herndon.

Posted by Robert Weed / in Blog, Chapter 13 Bankruptcy / No comments yet

Filing Chapter 13 Bankruptcy Woodbridge VA | Law Office of Robert Weed

I’m Northern Virginia bankruptcy lawyer Robert Weed.  I want to talk to you about filing Chapter 13 bankruptcy to stop foreclosure in Virginia.

Before the housing crisis, Chapter 13 bankruptcy was the best way to stop foreclosure in Virginia.  Today, a lot of the time, getting a loan modification is a better way to stop a foreclosure.

Before the crisis, if you got five months behind on your mortgage payments, the banks would send your file to their foreclosure lawyers.  And in the six month, you’d be foreclosed.  Before the crisis, mortgage companies did talk to people about loan mods.

To Stop Foreclosure in Virginia, For Some People Loan Mods Work Great

Now, under government and public pressure, the banks have loan modification and foreclosure prevention programs.  People five or six or eight to ten months, or more, behind on their mortgages can–sometimes–get a loan modification that brings them current, puts the late payments on the end of the loan, and even reduces the monthly payment.

Your legal tool to stop foreclosure in Virginia is bankruptcy. When you file Chapter 13, the law stops the foreclosure immediately. But you have to propose a plan to catch the house up–and then you have to do it.

Those programs have helped a lot of people–and they have let a lot of other people down.  The banks have been forced to establish these programs. Forced by public pressure.  Forced by Federal regulation.  Forced by lawyers and judges.   But the banks still run the programs, themselves.  It’s the banks, not a judge or legal authority, where you apply.  It’s the banks who accept you, or turn you down.

(Here are three websites that can tell you about those programs.   HUD–The US Housing and Urban Development Department. The State of Virginia.  And Virginia Housing Development Authority.   You’ll notice all these official websites warn your about scammers–scammers who take your money and make a BS promise to stop foreclosure.)

 Why file Chapter 13 bankruptcy?

If the loan mod program don’t work, if time runs out, you need a legal tool to stop foreclosure.  You need a law and a judge on your side.  The law that works to stop foreclosure in Virginia–for thousands of people every year–is Chapter 13 bankruptcy.

(Sometimes Chapter 7 bankruptcy is the tool you need.  I explain that, here.)

How filing Chapter 13 bankruptcy can stop foreclosure in Virginia

Chapter 13 is a bankruptcy repayment plan.  In Chapter 13, you say–and have to show–that you can pay your debts if you have time.  (Having enough time means usually five years, sometimes three.)  Chapter 13 can stop a foreclosure, if you can do two things.  Start paying your mortgage again on time.  And catch it up in five years with catch up payments through the bankruptcy trustee.

Filing a Chapter 13–even the night before a foreclosure–automatically stops the foreclosure.  (It loses its automatic effect if you do it too often.)  To stop it for more than a short while, you have to propose a payment plan.  And to permanently stop it, you have to get the plan approved–and you have to actually make the payments.

When does filing Chapter 13 work best to stop foreclosure in Virginia?

Suppose Chuck lost his job for eight months, got behind on his house, has a foreclosure next week, and is now working again.  Chapter 13 should work great for Chuck.  Since he’s working again, he should be able to afford his mortgage, and he should be able to make his catch up payments, too.

Chuck could not get a loan modification when he was out of work.  Now that he’s working, he doesn’t have time to stop the foreclosure in Virginia with a loan mod.   Chapter 13 can stop the foreclosure.  While he’s in Chapter 13, he can try again to get a loan mod approved.

Now look at Lisa.  Lisa got a graduate degree, and now her student loans are due.  She hoped her degree would get her a better paying job–but so far it hasn’t.  She tried to pay the student loans–and the mortgage.  And she got behind on both.  Lisa got turned down for a loan mod because her other debts were too high.    Chapter 13 can stop the foreclosure.  And it can also put the student loans on hold–so she can afford the mortgage and the catch up.  With the student loans now on hold, Lisa also can try again to get the loan mod.  Then she might use the Chapter 13 to start to pay the student loans.

Using Chapter 13 to stop foreclosure might even work for Lee.  Lee had an adjustable rate mortgage and he started slowly falling behind a couple years ago when it adjusted up.  Now he’s six months behind,got turned down for a loan mod (who knows why?) and foreclosure is scheduled.   He can stop the foreclosure with Chapter 13.  Realistically, he can only afford to carry out his plan for a few months.  As soon as the car needs repair, Lee will start falling behind again.  Maybe in the few months that he can afford the stay in chapter 13, Lee can try again to get a loan mod.  It might be worth a try.

Why Using Chapter 13 bankruptcy to Stop Foreclosure in Virginia often fails:

Five years is a long time.

Antonio and Rose filed Chapter 13 bankruptcy to stop foreclosure in Virginia back 2010.  That worked.  They made their five year Chapter 13 payments for three years.  Then their oldest graduated from high school.  At that point, they split up.  They can’t afford the Chapter 13 payment, can’t afford the house, and don’t really need the house now that the kids are gone.  They’re switching to Chapter 7.  They will let the house go.

The same thing can happen if someone in the family gets sick.  Or gets laid off.  Or if an elderly relative now needs more care.  Or if you get transferred to a distant city.    If  unpredictable life happens during the five year plan, it will probably fail.

Who is the Chapter 13 Trustee and What Does He Do?

If you use Chapter 13 to stop foreclosure in Virginia, you will spend five years having to answer to the Chapter 13 trustee.  In Northern Virginia, the trustee is Thomas Gorman.  He’s had that job since 2008.

When you set up a payment plan in Chapter 13, the person who collects your payments is Thomas Gorman, Chapter 13 trustee.

Besides taking your payments, and paying the money out to your creditors, the trustee has three other big jobs.

First, if your budget doesn’t work, the trustee tells the judge to throw you out of Chapter 13 right away.  If your paystubs and budget show you can’t afford this house and the catch up payment, the Chapter 13 trustee tells the judge there’s no point in giving you a chance.

Second, if you start to fall behind, the trustee tells the judge to throw you out.  Suppose you lose your job and the Chapter 13 trustee doesn’t get your payments.  He asks the judge to throw you out.

Third, the Chapter 13 trustee can ask to increase your payments.  The trustee looks at your tax forms every year, and if you’ve gotten a big raise, he wants it.  (If your plan is catching up the house but only paying part of your other debts, he says now you can afford to pay the other debts, too.)

As part of this, the trustee can sometimes grab your tax refund.  And if somebody dies during the five years and leaves you money, the trustee can go after that, too.

Maybe the Chapter 13 trustee also is supposed to operate a system that helps people succeed. (See 11 USC 1302(b)(4)) For many Chapter 13 trustees, that’s low on their priority list.

Problems with filing Chapter 13 bankruptcy

What are the problems with filing Chapter 13 bankruptcy?  Obviously the biggest problem is that you have to make the payments.

Second, here in Northern Virginia, the Chapter 13 trustee almost always puts a garnishment on your pay.  Lots of people want to promise they will make the payments faithfully, but the Judge here wants Chapter 13 trustee wants to be first in line.  People are afraid they are embarrassed with the HR Department at work.  (Actually the HR department probably has a lot of these.  And a chapter 13 payment plan should be a lot less embarrassing than getting garnished on an unpaid bill.)

Third, the Chapter 13 trustee often wants more money.  Sometimes, depending on your budget, we can start with a Chapter 13 plan that only pays your catch up payment.  In other words, we can start with a plan that leaves the student loans until later and wipes out your credit cards and medical bills.  Then if you get a raise, the Chapter 13 trustee wants more money so the credit cards get paid, too.  The Chapter 13 trustee here in Northern Virginia has gotten very aggressive about doing that.

When the Chapter 13 trustee says you can afford more money, it’s tough to get him to take into account the things you need that money for.  After two or three years, maybe you’ve gotten a raise.  In the same two or three years, the cars are older and need bigger repairs.  The house is older and it needs work, too.   And inflation has probably raised your grocery bills.  When the trustee asks for more, your lawyer can fight back.  But the trustee wins a lot.

Conclusion:  Many people will use Chapter 13 to Stop Foreclosure in Virginia

A lot of people in Northern Virginia have gotten through the worst of the housing crisis.  The value of your house may be back near what you paid for it.  That means you have more incentive to try to keep it.  (And the banks lose less money if they foreclose.)

I’m Northern Virginia Bankruptcy lawyer Robert Weed. You can see me in Annandale, Stafford, Sterling or Woodbridge if you need to use Chapter 13 to stop foreclosure in Virginia.

But while the housing crisis is most over, the recession really isn’t.  Most people are making less than they were, and few have gotten raises.

I expect that means more and more people will need to stop foreclosure in Virginia.  If the loan mod process doesn’t work, Chapter 13 can be the way to go.

I’m Northern Virginia bankruptcy lawyer Robert Weed.  I have offices in Annandale, Stafford, Sterling and Woodbridge.  Serving Fairfax, Loudoun, Prince William, and all of Northern Virginia.  If this applies to you, please make an appointment for a Chapter 13 consultation.   If you need to stop foreclosure in Virginia, I hope to see you real soon!

If you don’t live in Northern Virginia, you should look at NACBA.

Posted by Robert Weed / in Before Bankruptcy /

Most income taxes cannot be discharged in bankruptcy, but some can.

To find out whether yours can, your lawyer will need your tax account transcript.  The IRS makes these available now on line.  You can download yours here.

To find out whether your Federal income taxes can be discharged in bankruptcy, your lawyer will need to see your tax account transcript.

Why do you need that?  Your lawyer can use your account transcript to see if your taxes were filed, if they were filed close to on time, and if there was a recent assessment.

Here’s why:  The general rule is this:  You can discharge your Federal and state income taxes if:

1.  They were due more than three years ago.  (Example, the 2010 Federal taxes were due  for most people April 15, 2011–if you didn’t get an extension.  So April 16 2014 is more than three years after the 2010 Federal taxes were due.)

2.  You have filed them at least two years ago and close to on time.  (What does “close to on time” mean?  I’m not answering that here.  I’m NOT an expert on that.)

3.  Your taxes have to have been assessed at least 240 days ago.  Usually the taxes are assessed around the time you filed.  But if there was a recent audit or correction to your tax forms, you have to watch out for this rule.

Do you want to know more about this rule?  Nolo has several posts on this topic.  Here’s an article in the Journal of Accountancy.  Here’s some info from Fox Business.

WHATEVER you do, do not take legal action–like filing your own bankruptcy–based on what I say here.  The purpose of this blog is ONLY to tell you where to go to get your transcript.  You can get your tax account transcript from the IRS here.

If you are getting your transcript for this purpose, be careful to get the tax account transcript and NOT the tax return transcript.  The tax return transcript does NOT give the info you need.  The tax account transcript does.

Posted by Robert Weed / in Before Bankruptcy / No comments yet

I was the third lawyer Lisa saw for a Virginia Bankruptcy Consultation

Lisa had a Virginia Bankruptcy consultation with two well known bankruptcy lawyers.   Then she came to see me.

Both of those lawyers told her that her income was too high.  She could not file a Chapter 7 bankruptcy.  She would need to file Chapter 13.  They reached that conclusion without looking at her paystubs or making her do a budget.  Those lawyers offer what I call a “no-preparation consultation.”

Lisa had done research on her own.  She knew that high income people can still be eligible for Chapter 7.  (I explain how that works, here.)

AJ spent an hour going over Lisa’s situation, reviewing her forms as part of our 29 point paralegal consultation. Then another hour typing Lisa’s information into the computer for us to look at together.

We told Lisa she needed to fill in our 37 page forms.  She was glad.  Lisa spent an hour preparing the forms.  Then Lisa spent another hour going over the forms with AJ, one of my bankruptcy paralegals.

AJ, after that hour with Lisa, took another hour to type Lisa’s information into the computer.   So I had it.

Then Lisa and I talked for an hour.

At the end of that hour, here’s what we decided.

1.  In spite of what two lawyers told her, Lisa had income eligibility to file a Chapter 7 bankruptcy.

2.  There was no way Lisa could afford a Chapter 13 plan.

3.  There was a non-bankruptcy solution that would work better for Lisa than either Chapter 7 or Chapter 13.

Lisa’s persistence is unusual.   She talked to TWO lawyers who both told her the same thing–she still wanted a third opinion.

Lisa’s persistence is unusual.   Her problem isn’t.  The problem is, a no-preparation consultation will steer people wrong, a lot.  I guess one out of three of my clients would get steered wrong by a no-preparation Virginia bankruptcy consultation.

That’s why I work they way I do.  I hate to steer people wrong.

Some people get irritated that they can’t “just ask a question.”   And people don’t like being sent home to get more information.

What people do like, is that their bankruptcies get approved.  And they like their bankruptcy hearings to be easy.  You can read what people say in my CustomerLobby reviews.

If you want the best possible bankruptcy advice, call us.   Set an appointment.  We’ll ask you to do a lot of work to get ready for our Virginia bankruptcy consultation.  And we’ll do a lot of work to get ready to meet with you.

Don’t be afraid.  Call now.

Posted by Robert Weed / in After Bankruptcy, Weekly Posts / 2 comments

Here’s what happened when Jennifer reaffirmed her car loan with Apple Federal Credit Union.

Jennifer filed bankruptcy with another bankruptcy lawyer here in Northern Virginia.  She had a car loan with Apple Federal Credit Union, and she wanted to keep the car.  So she reaffirmed the car loan.

When you “reaffirm” a loan you take it out of the bankruptcy.  Later on, if you can’t pay, they can repossess the car, sue you, and garnish you.  Under the 2005 Bankruptcy Reform, if you don’t reaffirm your car loan, they can repossess your car–even if you are current.  (Although the law allows it, very few lenders do repossess cars that are current–Ford Motor Credit does, at least here in Virginia.  And I’ve seen it from Suncoast Credit Union in Florida, and Alaska Credit Union, from Alaska.)

Jennifer paid off her loan, and asked Apple to send her the title.  Apple FCU refused.

Apple said she could NOT get her car title unless she paid her Apple FCU credit card, too.   What?!  The credit card was wiped out in the bankruptcy.  Well, yes and no.

What Apple FCU did to Jennifer stinks. I’m fighting for her, even though I wasn’t the lawyer who did her bankruptcy. I’m known as a fighter.

The credit union can’t ask Jennifer directly to pay the credit card–that WOULD violate the bankruptcy law.  But “security interests” pass through bankruptcy.  A security interest is the right to repossess your car, or foreclose on your house, if you don’t make your payments.  After bankrutpcy that’s still true.  You still have to pay your mortgage and pay your car.

Credit Unions get you to sign in small print that your credit card counts as part of your car loan.  (I’m sure banks would do that too, unless some regulation told them they can’t.  I don’t know where that regulation is, however.)  The credit card balance, under the small print, is also secured by the car.   Actually, I just down-loaded the Apple FCU credit card agreement and it says that collateral securing other loans with the credit union “may” also secure this loan.  That’s a pretty weak warning.

That brings us to the reaffirmation.  Jennifer thought when she reaffirmed and then paid off the car loan, that she would have a paid for car.  The reaffirmation agreement showed the payments she had to make, and that the collateral was the car.  Shouldn’t that means when she made all the payments the car was paid off?

Jennifer thought so.  This column at bankrate.com thinks so.  I used to think so, too.

But I have to admit that Apple FCU has a point.  The required reaffirmation agreement, which is written in law at 11 USC 524(k)-(m) , doesn’t exactly say that.  It doesn’t say anything about what happens to the collateral.

The required reaffirmation agreement includes all kinds of warnings:  this is serious, you don’t have to do it, here’s what your payments will be; here’s the interest rate: here’s the collateral.  But it doesn’t say, when you get to the end, whether the car is actually paid for.

Admitting that this is a gray area, I still decided to fight for Jennifer.  I’m quick to fight for my own clients.  (I think that’s a lawyer’s job.  I explain what I do here.)  But I also fight to protect the frontiers of the law. ( Jennifer brought her problem to me because she heard I was a fighter.)

I want to know what the judge thinks about what Apple FCU did here.  Certainly it stinks.  And I also want to know if the judge thinks Apple’s credit card agreement really creates an enforceable security agreement.  It looks pretty vague to me.

I think Apple FCU is a decent outfit.  Before this, I’ve never seen them do anything underhanded.  (You can read in my blog about other banks and credit unions that I do NOT like.)   We often recommend them to clients who are looking for a credit union.  I have some hope they’ll decide they don’t want a fight on this issue.

If Apple decides to fight this out, I’ll let you know what the judge says.

• February 17, 2014, pm28 6:42 PM

  01

  Good news.

  Apple agreed we were right and they were wrong. We CONTINUE to have Apple FCU on our list of financial institutions we think treat people fairly.

• 

  Robert Weed

  April 22, 2014, pm30 2:54 PM

  02

  Around Northern Virginia, we see a lot of people who bank with Congressional Federal Credit Union. When they asked for a reaffirmation, we asked what stand they took on whether the reaf nullified any claim for cross-collateralization. We asked for them to put it in writing and they did. Here’s an expert from their email. .https://robertweed.com/wp-content/uploads/2014/04/Congressional-FCU-Reaffs-Nullify-Cross-Collateral.pdf

Posted by Robert Weed / in Weekly Posts / 2 comments

For some people, Chapter 7 bankruptcy is the best way to stop foreclosure in Virginia.

Some people think the only way to stop a foreclosure is a Chapter 13 bankruptcy.

Mark and Tina Allen (not their real names) got a Virginia bankruptcy lawyer who thought that.  When they told him they wanted to stop foreclosure on their house, he put them into a Chapter 13.  Chapter 13 is a payment plan through the bankruptcy court.  Their Chapter 13 plan gave them five years to catch their house up–but the payment was way more than they could afford.

(Mark had been out of work for eighteen months and was now making half of what he had been making.  They couldn’t even afford the mortgage payment–much less a catch-up payment, too.)

So, after spending three thousand dollars on that lawyer, their Chapter 13 was thrown out.  At that point, they came to see me.

Mark and Tina wanted to stop foreclosure–just for a year, so Junior could graduate from high school with his friends.

In our first visit, Mark and Tina spent more time with me than they had with their first lawyer through the entire bankruptcy process.  (That’s what they told me.)  When we talked about it, their goals got clearer.

They really did NOT want to keep their house over the long run.  (They had bought in 2007, and were still over $100,000 upside down.  Unless Mark got hired back in his field, they knew they couldn’t afford it.)   They did want to stop foreclosure.  They wanted their son to graduate from high school with his friends–then they would be ready to move out.  To rent a place that they could afford.

We could do that with Chapter 7.  (We needed two Chapter 7 bankruptcies, actually.  To stop foreclosure twice.)

First, we put Mark in a Chapter 7 bankruptcy to stop foreclosure scheduled for late June.   Chapter 7, around Northern Virginia, gets you at least three months, usually four or five, and sometimes six, seven or eight, before they schedule the next foreclosure sale date.

In Mark’s case, we got six months and two weeks–about what we hoped.

Next week, we’ll do a second Chapter 7–this one for Tina.  That will stop the foreclosure that’s scheduled mid January.  We hope that will get us to July.  Long enough for Junior to graduate with his friends.

When Mark and Tina have to move out, they’ll have a little money saved.  They’ve gone a year without making any mortgage payments.  That’s given them the cushion they need.

(Mark is still hoping to get back to doing the kind of work he did before his layoff.  If their income improves by summer, we can then use a Chapter 13 they could actually afford to catch the house back up–they still want to.  Or, see if they can get a loan mod, now that they can show the mortgage company they have money to afford the house.)

Chapter 13 is a powerful tool.  It’s a complicated, expensive tool, too.  For most things, you want to use the simplest tool that does the job.  More than many lawyers around here, I find that Chapter 7 bankruptcy does the job.

If you need to stop foreclosure, a lot of the time Chapter 7 bankruptcy is the tool for the job.