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  • Spectacular!

    I liked your fast, friendly service. You were all knowledgeable in the area of bankruptcy. Your treatment of me as a client was spectacular! You were great at promptly responding to my questions and concerns. I loved that you provided courteous and quick responses to all my questions.
    --Donna
  • Highly Recommended!

    I have worked with Seth and he is the utmost professional in how he works with his clients. If you need an attorney you can trust I would highly recommend the Law Office of Seth Hanson.
    --David
  • Very Professional.

    Everyone was very professional and efficient. Seth, and everyone that I had contact with were very knowledgeable. I was very pleased with how we were treated by his staff. My questions were always answered promptly. I was very pleased with the service I received and would not hesitate to refer someone to your firm.
    --Anonymous
  • Non-judgmental.

    You were very open and answered all of my questions. You never made me feel like I was asking a dumb question. I was comfortable with your knowledge of the law. It was hard for me to make this decision to move forward in my life. Everyone was friendly to me and respectful. Non-judgmental. Every question I asked was answered promptly and appropriately. I would recommend you.
    --Anonymous
  • More Than Expected!

    I found the firm's representation to be more than what I expected. I was always kept in the loop, all my questions were answered (whether or not I asked more than once the same question), and I felt completely supported by the firm staff when going through this (at times) scary ordeal. Thank you again.
    --Joanna
  • Very Impressed!

    I liked that you had very friendly, caring staff. You were all very knowledgeable. Your treatment towards me was excellent and you quickly responded to all my concerns. If a friend asked of your overall impression, I would say that we were very impressed and we would recommend you to them.
    --Danielle

House Payments In Chapter 13 Bankruptcy

Mortgage payments are usually the largest monthly expense a person has in their budget. The last thing someone wants to do is to make that payment even greater, especially when one is looking at filing for bankruptcy. When our office is looking at filing a chapter 13 bankruptcy case for someone who is in the middle of paying off a home loan, one of the very first things we ask is: are you current on your mortgage payment?

Staying Current

Why is this absolutely vital to know? Because if you file for chapter 13 bankruptcy with even a penny owed past its due date to your mortgage lender, the lender can and often will file an objection to your plan and will insist that the mortgage payment must be made by the court-appointed trustee in your case. This gives the mortgage lender an assurance that they will receive timely payments for the duration of your plan, while also ensuring any and all arrears are paid over the plan’s duration. Why is this outcome not ideal? Because trustees are paid a fee on top of any debt they are in charge of paying through your case, in the approximate amount of 10%. For example: if you pay $2,000 a month for your mortgage, if that payment is structured within your plan, you can expect to now be paying about $2,200 for this same bill. In this example, under a 5-year plan, you would effectively pay an extra $12,000.00 for your mortgage than if you were current when you filed you would not have to pay. This fee is applied to any debt balance being paid through your plan, but unlike these other debts, you can have some level of control over whether or not this debt is paid through your plan or not.

Foreclosure

In cases of imminent foreclosure, you may not have the luxury of time to catch up on past due plan payments, but if you are not facing an imminent foreclosure that you are attempting to stop by filing, we typically encourage you to pay off any past due balance to your mortgage lender before proceeding with your Chapter 13 bankruptcy to save themselves a significant sum over the next five years.

If you have questions about the bankruptcy process reach out to your Stockton bankruptcy attorney at (209) 952-0355.

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