Northampton Mortgage Foreclosure Attorneys

Bankruptcy Lawyers: Hampshire, Franklin, Hampden and Berkshire Counties

We've represented many clients who filed for bankruptcy in order to keep their houses out of mortgage foreclosure due to loan payment defaults. If your mortgage is in serious default, or if your lender has begun the mortgage foreclosure process, contact the Hampshire County home mortgage bankruptcy attorneys at the Ostrander Law Office in Northampton.

If you're concerned about an upcoming mortgage foreclosure sale in or near Hampshire County, call us at Ostrander Law Office without delay. The sooner the better; our early involvement will be in your best interests. Once the foreclosure sale has taken place, there's very little we can do to help you keep your house. Ostrander Law Office serves clients throughout central and western Massachusetts, including Hampshire, Franklin, Hampden, Berkshire and Worcester.

Secured Debts in a Bankruptcy: House Loans and Car Loans

Secured debts — whether residential or commercial mortgages, car loans, or any other debt secured by collateral — are generally not dischargeable in bankruptcy, except when defects in the mortgage or security agreement are identified during the bankruptcy case. That doesn't happen too often.

Filing bankruptcy gives you temporary relief from foreclosure or repossession proceedings. The automatic stay of bankruptcy prevents the secured creditor or mortgage holder from taking immediate action on its claim. However, the creditor can apply for bankruptcy court permission to repossess or foreclose on the collateral. More often, however, especially in a Chapter 13 bankruptcy case, we can negotiate with your mortgage company to keep you in your house, and pay off the defaulted amounts over three to five years in the Chapter 13 plan. Even in a Chapter 7 case, if you have a regular income, we can arrange for a reaffirmation agreement with the mortgage holder to avoid the loss of your home.

Stripping Second Mortgages and Paying Back Overvalued Loans

Secured creditors are only secured to the extent of the value of the collateral. If your car loan debt is $10,000 and the fair market value of your car is only $8,000, then the creditor has a secured claim for most of the debt and an unsecured claim subject to discharge for the remaining $2,000. In cases like this, Chapter 13 gives you the chance to resume your normal car payments, spread defaulted payments out over the time period of your Chapter 13 plan, and, in some situations, discharge that part of the claim that exceeds the value of the car.

Bankruptcy issues concerning secured claims, collateral values, and even disputes between secured creditors competing over the same collateral can get very complicated. For reliable advice about your particular circumstances, contact the western Massachusetts home mortgage foreclosure lawyers at Ostrander Law Office.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.