According to the latest reports, over 4000 Iowans who have a Fannie Mae or Freddie Mac mortgage loan are delinquent in their payments. The number of delinquent borrowers is even higher when you include non Fannie or Freddie loans. For some delinquent borrowers a sheriff’s sale is the final step to getting out from under a home they can’t afford. Many people are deciding to walk away from mortgages that now far exceed the value of their home and theirRead more
Catch up on back mortgage payments at 0% interest. Catch up on car loan payments and repay vehicles loans at low interest rates. “Cram down” the loan on a vehicle or other property purchased more than two and 1/2 years ago to its fair market value. Recover recently repossessed vehicles and repay the loan at low interest rates over time. Strip off your underwater 2nd or 3rd mortgages. Discharge property settlement obligations from a divorce decree. Repay recent tax debtsRead more
Last fall one of my Chapter 13 clients came to me with complaints that a credit union listed in his bankruptcy as a creditor was sending him letters demanding payment of a debt already being paid through his Chapter 13 plan. The credit union certainly knew of the bankruptcy because it had filed a proof of claim and had received monthly payments from the trustee for over three years. We advised the client to wait until the credit union hadRead more
Increasingly, one of the most common questions we’re asked is whether you can discharge student loans in bankruptcy. Until 1998 student loan debtors were able to discharge some loans if they were old enough. But in 1998 Congress changed the law to make it harder to for student loan debtors to get relief. Restrictions on the discharge of student loans were first applied just to federal loans but in 2005 they were extended to private loans as well. This hasRead more
I am Nancy Thompson with Thompson Law Office. I am a bankruptcy attorney in Des Moines, Iowa and represent people in bankruptcy throughout the state of Iowa. Welcome to this blog on Chapter 13 bankruptcy.
Chapter 13 bankruptcy helps a person reorganize debts. Over a 3-5 year period debtors make payments to a trustee, who disburses the funds to creditors. Unpaid debts remaining at the end of the plan period are discharged, just as they would be in a Chapter 7. Secured creditors may be paid by the trustee or directly by the debtor. Unsecured creditors may receive payments if there is income left over each month beyond what is necessary to pay living expenses,Read more