Florida Bankruptcy Attorney Blog

The promise of a bill to handle delinquent first mortgages through the bankruptcy process died a quiet death. Meanwhile, the government appears to be relying more on the regulatory mechanism to handle the economic malaise that has swept the country since the end of 2007. By most estimates, this recession actually began a long time ago, but the full impact of it has not really been felt by most people until recently. With consumer spending down 1% this past March, any recent optimism may be false hope for the time being. Also, unemployment continues to climb.

Where does this leave you, the strapped homeowner, delinquent on your mortgage payments. It may be that you also took out a second home equity line of credit, which by now has been entirely spent. Depending upon the value of your home, your second mortgage may be removeable, you might be able to both lower your total mortgage payment and pay back your delinquent payments through the bankruptcy process. Don't discount bankruptcy as a possible valid option in your case.

Depending upon the jurisdiction in Florida or elsewhere, it may be better for a client to declare either a Chapter 7 or Chapter 13 for a client to protect his home. For those behind on their payments, a Chapter 13 bankruptcy is often touted as the best solution. But this is not necessarily the case. Sometimes it is better to fight and renegotiate your mortgage and then declare a Chapter 7, even though there is an element of risk doing this. Much of this kind of decision rests upon the amount of income you are generating. Factors to consider include things as minor as Trustee collection fees. For these and other complicated reasons it is always good to consult with a bankruptcy lawyer and not engage in this process without professional help.