A client consulted with us because she was trying to save her investment property. She originally filed a Chapter 13 bankruptcy with another law firm, but the case was dismissed. Her investment property was worth $90,000.00, and it had a $131,860.00 mortgage encumbering it.
We filed a new Chapter 13 bankruptcy for this client, and successfully negotiated a cram down on the investment property’s mortgage. The payments are going to be stretched out over 8 years, and the interest rate was reduced to 5.25%. This was a very successful case because typically you cannot extend the terms of a mortgage more than 5 years unless the bank agrees to the terms.
In addition, our client was able to surrender her homestead property, discharge $486.687.59 of secured debt, and discharge $142,121.96 of unsecured debt. She makes a monthly payment to her unsecured creditors of $279.60. Her unsecured creditors will receive a total of $14,818.80.