St. Louis bankruptcy attorney and bankruptcy lawyer Frank Ledbetter discusses chapter 13
and loan modification details. Also, Chapter 7 bankruptcy specialist. More info. call 314-669-4529. Hi, I’m St. Louis bankruptcy attorney Frank
Ledbetter. I’ve been a St. Louis bankruptcy lawyer since 2003, during which time I’ve
helped thousands of Missourians get relief from their debts, rebuild their credit scores,
and in several hundred of the cases, stop the Missouri foreclosure process. People who consult with me for the first time
were often unaware that they could even stop a Missouri foreclosure sale by filing for
relief under the Bankruptcy Code prior to learning from me that they could. Clients who are facing a foreclosure sale
wonder about how their mortgage will be repaid after they file. The bankruptcy court in St.
Louis allows a homeowner up to four years to repay the homeowner’s mortgage arrearage
(the amount they’re behind) over a period of four years according to what is called
the Chapter 13 Plan. Generally, clients will opt to pay the new
monthly mortgage payments that come due each month to the mortgage lender directly because
it will save them money to do so versus putting the post-case filing monthly mortgage payments
inside the Chapter 13 Plan. Structuring the plan with the post-petition
monthly mortgage payments being paid directly to the mortgage lender versus via the Chapter
13 trustee will save the average client over $1,000.00 over the life of the client’s Chapter
13 Plan. The Chapter 13 case will stop the foreclosure
sale, give the client up to 4 years to repay the past due amount owed to the mortgage lender
in equal monthly installments, but the bankruptcy will not change the amount of each monthly
payment that comes due after the case is filed. A loan modification might be obtainable during
the Chapter 13 case, but absent the client’s obtaining a loan modification while in the
Chapter 13 Plan, the new monthly payments will remain the amount due per the mortgage
loan contract.