Wednesday, April 13, 2011

Bankruptcy clients in Rhode Island will own their house with no mortgage in five years.

In the Rhode Island Bankruptcy Court today I obtained approval of a Plan for my clients to reduce their mortgage balance from almost $130,000 to $49,000, and to reduce their interest rate as well. The best part of the Plan is that my clients will only have to pay back the $49,000 at 5.5% interest. At the end of five years, they will own their house free and clear, due to the cramdown provision in the Bankruptcy Code. Many more clients are taking advantage of this Chapter 13 bankruptcy provision to reduce their mortgage balances and make their homes affordable.