If you are facing the unfortunate possibility of losing your home, it is important to take the proper precautions that may help you in the long run. Read more about how a loan modification or bankruptcy filing can help you prevent a property foreclosure and how a seasoned Rockland County bankruptcy attorney at the Law Offices of Allen A. Kolber, ESQ., P.C. can assist by adding an additional line of defense.
How can a loan modification prevent foreclosure on a property?
A loan modification allows you to edit your mortgage payments to align with your current financial situation.
The state of New York requires properties on the brink of foreclosure to be assigned to the Foreclosure Settlement Conference Part. During this process, the bank will review your finances to determine if you are eligible for a loan modification. It is important to note that a bank will only approve a loan modification if they believe you can successfully make your payments through the updated plan.
You are required to provide the bank with the following documents to apply for a loan modification:
- Financial statements.
- Personal or business bank statements.
- Pay stubs from contributing family members in the household.
- Tax returns.
- Hardship letter.
- Current utility bill.
How can filing for bankruptcy prevent foreclosure?
Chapter 13 bankruptcy is done by your submitting a plan to pay your debts over the course of 3 to 5 years so that you can catch up on payments. Then, the Automatic Stay goes into effect immediately, which protects you from being harassed by creditors and any collection activities.
Importantly, before you file for Chapter 13, you are required to receive and prove credit counseling within 180 days before filing. If a previous petition was dismissed within the 180 days, you cannot file again.
Once you file, you should file additional documents, such as lists of liabilities, assets, properties, executory contracts, and unexpired leases, along with statements of financial affairs, income payments within 60 days prior to filing, monthly net income, and any indication of a rise in income and expenditures.
If you are considering filing for bankruptcy to prevent the foreclosure of your home, do not hesitate to reach out to an experienced Rockland County bankruptcy attorney today.
Contact our experienced New York firm
Bankruptcy, for many people, is a frightening endeavor. Fortunately, with the help of an experienced attorney, it does not have to be. If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options. We will have your back every step of the way.