Why Do a Chapter 13 Bankruptcy Buyout Now?

  • Lower monthly debt payments!

  • Ends stigma of bankruptcy and puts you on the road to better
    credit! Better credit means lower interest rates on future big
    ticket purchases such as a new car, furniture or home!

  • Could put a lump sum of Cash in your bank account!

  • Opportunity to use monthly savings and lump sum cash to
    create an emergency reserve fund that grows tax free!


Chapter 13 Bankruptcy Buyout explained

A mortgage refinance ending your bankruptcy has the potential to lower your monthly debt payments substantially. Many people save hundreds, even thousands of dollars each month on their monthly debt payments.

When you filed Chapter 13 Bankruptcy, you agreed to pay your past due mortgage payments and other debts usually over 60 months or 5 years. You also agreed to make your regularly scheduled mortgage payments in a timely fashion to your lender. If you have made these payments on time (never 30 days late) for at least twelve months, you have demonstrated to some lenders that you are a good risk, since you have handled the higher monthly payments.

A new 30, 40 or 50 year first mortgage refinancing your existing mortgage and paying off the Chapter 13 Bankruptcy allows you to stretch your debt payments over 30 to 50 years, and this should lower your monthly payments. The down side is you will be paying interest on these debts for 30 to 50 years and your unsecured debt will be paid in full. Under your Chapter 13 Bankruptcy Plan, the remaining balance on your unsecured debt might have been discharged at the end of the 60 months. You will want to discuss this with your Bankruptcy Attorney after we determine how much we might be able to save you on a monthly basis. We work closely with your Attorney who will be contacting your Trustee for permission to refinance, a payment history and the remaining balance owed to the Trustee. Your Bankruptcy Trustee has to approve of the refinancing.

While stretching your unsecured debt over 30 or more years might sound scary, keep in mind, if you were only making the minimum required payment on your credit cards prior to filing the bankruptcy, it would have most likely taken 28 to 35 years or more to retire the credit card debt. Also, most mortgage interest is tax deductible while credit card debt is not. Tax savings is cash in your pocket.

The key is cash flow. Lowering your debt payments increases your cash flow. This buys you time to concentrate on increasing your income which will also increase your cash flow. It also reduces stress, as you now have a cushion to work with that you did not have under the direction of the Chapter 13 Trustee.

You might also be able to pull a lump sum of cash out of the equity in your property in addition to paying off the Chapter 13 Bankruptcy and the old mortgage. Of course, if there is no equity or very little equity in your property, the Chapter 13 Bankruptcy buyout won’t work. With the recent crisis in subprime mortgages, most lenders require you to have equity in the property after the refinance. The more equity the better, as this makes the lender feel more secure in lending you money.

Now, if you are interested in lowering your monthly debt payments, call me at

1-800-955-7898

to discuss your situation. You can apply online at the link below, but we have found a personal discussion can save you a lot of time and work.

A Chapter 13 Bankruptcy Buyout Refinance is more complex than a normal refinance. Your Bankruptcy Trustee must approve the refinance plan, provide an updated balance owed under your Plan, provide a payment history under the plan and notify your creditors. In some jurisdictions, the Trustee meets once a month. So the sooner you get started, the sooner you can put the stigma of Bankruptcy behind you, lower your monthly debt payments, possibly cash out some of your equity, and be on the road to restoring your credit. Bad credit does not have to be permanent!

Call us today to explore your refinancing options.

1-800-955-7898

Thank you.

becox@coxfn.com

Apply online now!

Visit our blog

NFS-NJLoanApplications

P.S. Profit from my 35 years experience in the Financial Services Industry.

Bruce Edward Cox NMLS# 182629

Licensed by the NJ Department of Banking and Insurance, PA Department of Banking.

 

 

Copyright © 2010 - 2014 Bruce E. Cox, CPA. All rights reserved