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Mr Zimmerman was helpful and kind and prompt . He always answers his phone and that is refreshing . I will be using him for my bankruptcy in the future. He is one of the good ones . He is an outstanding attorney who truley care . He made ev...
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Mr. Zimmermann is a fantastic bankruptcy attorney who handled my case with care, efficiency and urgency. We were able to beat a judgement against me in the nick of time, and I truly feel a sense of relief due to the services of Mr. Zimmerma...
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This Lawyer will go above and beyond for you. As well as show tremendous empathy for those who are vulnerable and scared. His compassion to help civilian's shows through his actions and with his word. When he says he is going to call he cal...
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I’ve worked with Mr.Zimmerman on two different legal issues. In both instances he was fantastic! He is extremely knowledgeable and compassionate and able to breakdown a course of action into language anyone can understand. I would highly re...
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I highly recommend Mr. Zimmermann as an attorny. I recently purchased an investment property and boy was he helpful. He was easily available, very clear in explaining various concepts, laws and regulations, and provided very helpful tips o...
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- posted: Dec. 22, 2021
If you are a homeowner who falls behind on your mortgage payments, it might seem impossible to make your account current again. If the bank isn’t patient, it may accelerate your payments, requiring you to pay the full amount due on the mortgage, and may foreclose on your property if you don’t.
Fortunately, a Chapter 13 bankruptcy can make it possible to dig yourself out of this hole and keep your home. It allows you to pay off many of your debts over a three- or-five-year period while in most cases reducing the amount you pay. And at the end of the bankruptcy, your remaining debts can be discharged, meaning that you no longer owe them.
The immediate benefit of a Chapter 13 filing is that an automatic stay goes into effect, which prevents the mortgage lender from taking any action to declare the loan in default or to pursue foreclosure. The stay remains in force throughout the life of the Chapter 13 plan as you make your required payments on time, including payments on the mortgage arrears. You must also keep up with your ongoing mortgage payments during the plan, or else the court may lift the stay and allow foreclosure.
Chapter 13 helps homeowners to get relief from their mortgage arrears in other ways. One option is known as a “cure and maintain.” This means you keep paying off your mortgage arrears gradually over the course of the court-approved plan. However, since the Chapter 13 plan will last for five years at most, you may not be able to satisfy a large amount of arrears within that time. You also will likely be required to pay various costs and fees the bank imposed as part of your loan, though you may be able to challenge those charges as invalid. If the court agrees, they may be reduced or even eliminated.
Another possible remedy is to secure a loan modification through the bankruptcy court’s loss mitigation program. If the bank chooses to participate, it may agree to a reduced monthly payment of principal and interest, which is typically 2/3 the size of your current payment. You will also have to pay the full amount of your real estate taxes and as well as homeowners’ insurance premiums.
The Law Offices of James C. Zimmerman can explain these and other advantages of Chapter 13 bankruptcy and can answer any other bankruptcy questions. Call us at 973-764-1633 or contact us online to schedule a free consultation at any of our five offices, located in Vernon, Wayne, Pompton Lakes, Hackensack and Nutley, New Jersey.
