I have already gotten several loan modifications and I have fallen behind again. What are my options now? Is it too late to save my home? Chapter 13 bankruptcy might be the answer.

If you have received a loan modification and modified your home mortgage, either through the Obama Plan (HAMP) or some other modification program, you may be able to request a new modification if you have defaulted on your first modification.

There is a program called HAMP Tier 2 that may allow you to modify your mortgage if you have fallen behind with your HAMP 1 modification.

Some lenders will consider modifying your loan even if you have had one or two or even three prior modifications. In recent months I have been seeing 40 year term loan modifications for clients that defaulted on their prior 30 year modification.

If your mortgage company refuses to modify your mortgage again, you should consider filing Chapter 13 bankruptcy. A Chapter 13 bankruptcy allows you to pay the arrearage back to the mortgage company over 60 months. In addition, every month you must pay your mortgage payment to the mortgage company. In other words, you will be paying two payments every month; one to the mortgage company and one through the bankruptcy court towards the amount you are behind. The mortgage company cannot stop you from doing this. As long as you can afford to make the payments the court should approve your Chapter 13 plan.

This is very helpful to my clients because after their mortgage has been modified, they usually have a very low interest rate and their mortgage payment is usually affordable. If they have some temporary setback, like an injury or a seasonal layoff, and fall behind with their payments, Chapter 13 allows them to get caught up.

It is not too late to file Chapter 13 bankruptcy even if you are in foreclosure and even if the foreclosure has gone to judgment. You can file a Chapter 13 bankruptcy and save your home on the last day of the foreclosure which is called the law day. If there is a foreclosure sale, you can even file a Chapter 13 bankruptcy after the auction takes place but before the court approves the sale.

The WPCA is a sewer tax. When the WPCA hires a lawyer to collect the past due sewer bill, they usually start a foreclosure. Chapter 13 bankruptcy stops the WPCA foreclosure and allows you to repay what you owe.

Chapter 13 bankruptcy also allows you to pay back past due real estate taxes, income tax to the IRS and the State of Connecticut as well as other types of debt.

If your car is repossessed, Chapter 13 will force the repossession company to return your car. You may then pay the car loan back over 5 years at a reasonable interest rate.

Call Attorney Pletter to discuss your options. He has been saving his clients’ homes and cars for over 20 years.