Laid off and in a bankruptcy

My husband and I are currently in a chapter 13 bankruptcy. I was laid off in April and have been able to make mortgage payments up until September. We are going on two months of missed payments. I've contacted agencies in Philadelphia and was told that there were no programs to assist until I received an Act 91 from the mortgage company. I am trying to avoid having the bankruptcy dismissed because it is actually working for us, as a means to clear up our debt. Does anyone know of any programs that will assist folks in a bankruptcy who are behind in their mortgage payments due to unemployment?

Edited: 06/26/2010 at 10:16AM

Jason S.

Real Estate Investor · Upland, California

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Icon_minipost Nov 19 '09, 02:52 PM

Most banks should work with you for your back payments - the big focus, of course, would be the income side of the equation. If the bank sees that you had an interruption in income but now have a new job and enough income to begin paying again - they should be able to work with you. If you do not have enough income to make the payments - in the end the banks usually are stuck and not able to do anything.

I hope that helps a little. I guess I more or less stated the obvious but hopefully it helps.. In this economic environment the key to the negotiation is your income.

I sincerely wish you the best.

Hopefully the Administration will stop their current policies/agenda and work on actually doing what is necessary and proven to create jobs and get the economy moving again.

Edited: 06/26/2010 at 10:35AM

Jim Wineinger

Real Estate Investor · ten mile, Tennessee

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Icon_minipost Nov 19 '09, 05:25 PM

I am trying to avoid having the bankruptcy dismissed because it is actually working for us, as a means to clear up our debt.

Actually, you should inform the bankruptcy judge of your current condition. It is his responsibility to do what is best for the creditors AND YOU. If you do not inform of this, and the bank brings it up he will view it as your filling of bankruptcy is under false pretenses and will immediately dismiss the bankruptcy. With the knowledge he can order the creditors into accepting lower payments with lower interest rates in such a way that everybody wins, including the other creditors (besides the bank) that you apparantely do not want to have to repay. It would be called an forced reorganization of your debts.

Bankruptcy is a last resort when all other options have been tried. If you complete the bankruptcy and afterward pay any dismissed debt then all dismissed debts are again owed by you.

Edited: 06/26/2010 at 10:35AM

Jim Wineinger

Real Estate Investor · ten mile, Tennessee

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Icon_minipost Nov 19 '09, 05:30 PM

But I must caution, that this is true for the "chapter" of bankruptcy that I looked at. And there are so many "chapters" that this actually may not apply to you.

Best answer is to consult with your attorney as these rules keep changing as well.

Edited: 06/26/2010 at 10:35AM

Timothy Kyle

Real Estate Investor · Wethersfield, Connecticut

2 posts
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Icon_minipost Jan 12 '11, 12:38 AM

Allyson, I've been in your shoes. After my health issues I declared Bankruptcy while recovering to help my wife deal with all the bill collectors. Even though I'm back and healthier than ever and back as a Real Estate investor, it is very hard and at times demoralizing. The key though, I will tell you is be honest and constantly communicate your situation. Use Jawsette's advice and let the court system help you out with dealing with your bills/mortgage payment. Be honest, patient, and keep communication. Just remember this too will pass, and if you learn from this you will become stronger. I promise you that.