Taxes and Student Loans in Bankruptcy

Taxes and Student Loans in Bankruptcy

Taxes and Student Loans in Bankruptcy

There are certain kinds of debt that can be discharged in bankruptcy.

A Chapter 7 bankruptcy is a great way to reduce or eliminate many debts.  A Chapter 7 bankruptcy can help discharge credit card debts, medical debts and many other types of unsecured debt.  A Chapter 7 bankruptcy may allow you to reduce or eliminate credit card debts or other unsecured debts, thereby enabling you to focus your debt repayment efforts on tax liabilities and student loans.

Taxes and Student Loans – Dealing With Non-dischargeable Debts in Bankruptcy

Some debts are difficult or impossible to discharge through bankruptcy.  Debts that are difficult or impossible to discharge include:

  • Student loans
  • Child support arrears
  • Certain types of taxes owed to the government

Not all unsecured debts can be eliminated in bankruptcy.  While exceptions to discharge cover debts range from child support to back taxes, rules differ depending on factors like the nature of the debt, the age of the debt, or your ability to present a hardship case.

Non-dischargeable debts come in many forms.  Some are by definition non-dischargeable, while others are subject to discharge unless the creditor files a specific objection.  Examples of non-dischargeable debts include the following:

  • Lawsuit damages related to drunk driving, willful or malicious conduct, or fraud
  • Child support or alimony
  • Taxes that are less than three years old or for which no return has been filed
  • Most student loan obligations
  • Certain credit card debts incurred under circumstances indicating an intent to defraud the issuer

Certain types of state and federal taxes, as well as student loans, fall into the category of debts that are generally not dischargeable.  However, some types of tax obligations can be discharged.  Talking to a lawyer can help you to determine which type you have.

There are also debt relief services available to people suffering from an unmanageable tax debt or student loan debt.  For example, a Chapter 13 bankruptcy may allow you to pay back other debts over a longer period of time and therefore increase your ability to handle your current tax or student loan debt load.

Many old tax debts can be discharged in bankruptcy

Many people will tell you that tax obligations are non-dischargeable debts.  This is only true of taxes that have been assessed and payable for less than three years.

If you owe taxes for which you’ve filed the returns more than three years ago, or that have been in collection for at least that long, you can discharge them in bankruptcy like other unsecured claims unless enforceable tax liens are in place against property with enough value to meet them.

Student Loan obligations in bankruptcy

It used to be that a hardship argument could convince a bankruptcy court to excuse you from repayment of student loans.

Today, recent amendments to the Bankruptcy Code have made it more difficult to prove hardship as a basis of discharge.  In order to prove hardship, it is now necessary to demonstrate that your education has little or no value in helping you generate income for reasons beyond your control.  It is also important to note that if you have been excused from your student loans there are many jobs that you will be unable to apply for because you have been excused from repayment of student loans.

Find Out if You Qualify


What Do You Lose If You Declare Bankruptcy?

What Do You Lose If You Declare Bankruptcy?

If you are reading this, you probably know what it means to claim bankruptcy and is looking to find consequences. On the flip side, there is you who sauntered onto this article unbeknownst of what ‘bankruptcy’ means. I will keep you both in mind through this. Shall we?

Bankruptcy is the legal process that involves a person or business who cannot settle its debts. In this process, the debtor states his or her financial state. Afterward, the assets owned by the claimant is valued in view of offsetting a portion of the debt.

More: The Difference between Chapter 7 and Chapter 13

There are different reasons why people file for bankruptcy—job loss, bad business deal, a divorce, a medical emergency, government policy or death of a loved one. Depending on which, the type of bankruptcy commensurable is filed. This brings us to the types of bankruptcy that exist. They are:

  • Chapter 7: Liquidation
  • Chapter 13: Repayment Plan
  • Chapter 11: Large Reorganization
  • Chapter 12: Family Farmers
  • Chapter 15: Used in Foreign Cases
  • Chapter 9: Municipalities

In all the above listed, one thing that is common is that bankruptcy of any kind, can give you a chance to get your finances in order. Although it also has negative consequences that can affect your assets and make it somewhat impossible to secure certain opportunities in future. These opportunities are what we will be looking at below:

  1. Your asset gets liquidated: By this, all your valuable belongings is estimated in order to pay off your debt.
  2. You get a payment plan: This may sound like an aid, but it is more detrimental if any part of the structured payment plan is flouted.
  3. Bankruptcy is indelible: Once filed and is stored in the system, it never goes away. This can affect a loan in future, a new business venture, even a job opportunity.
  4. Trust: You lose trust when you file for bankruptcy. The trust is severed from people referencing your past mistakes or misfortunes to your present effort to take another swing at life.
  5. You can lose your assets: When you miss your bankruptcy payments, this can mean that your assets will be taken from you. In view of this, those who stop making payments may lose all exempted property, including houses, cars, and any other secured asset.
  6. It is expensive: The process of filing for bankruptcy ironically involves you spending more money. Depending on your state or country, a fixed fee is paid to file firstly. Then all the legal proceedings thereafter can deepen the hole in one’s pocket.

In conclusion, bankruptcy serves its purpose but it is mostly a last resort for individuals and businesses alike. Understanding the types of bankruptcy can aid your decision. While knowing the consequences attached can help you make an informed decision. Do your research about filing for bankruptcy in your residence. Possibly seek professional advice from the experts in this field. The aforementioned can help you make a more informed decision.



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How Much Do You Have to Be in Debt to File Chapter 7 Bankruptcy?

How much do you have to be in debt to file Chapter 7 Bankruptcy?

How much do you have to be in debt to file Chapter 7 Bankruptcy?

Are you neck-deep in debt? Are you considering filing up for bankruptcy? When you think of filing up for bankruptcy, do selling off your assets come to mind? If your answer to these questions is a yes, then you need to keep reading.

Bankruptcy has to do with a legal process of declaring that an individual or business can no longer settle its outstanding debts. There are various types of bankruptcy. Here we will be delving into one – Chapter 7 Bankruptcy.

The Chapter 7 Bankruptcy, also known as Straight or Liquidation Bankruptcy, is one that entails the debtor to sell off his or her nonexempt assets in order to settle the bankruptcy trustee. Therefore, using the profits of the nonexempt assets to pay creditors, in line with the criteria of the Bankruptcy Code. This kind of bankruptcy is very common and requires a tad bit of protocol in comparison to the others.

In addition, a Chapter 7 Bankruptcy is what a lot of people think of when they think about bankruptcy. It is a sure gateway to a financially clean portfolio. It also is one of the fastest. Hence its popularity.

Furthermore, for you to consider Chapter 7 Bankruptcy you must be struggling with debts you can’t pay. Only then can you qualify to file for debt relief in accordance to Chapter 7 of the Bankruptcy Code.

In truth, there is no minimum amount weighed in before one can file for bankruptcy under the chapter 7 bankruptcy code. It is only a question of considering the important factors when determining if filing bankruptcy now is the best debt recourse for you.

Therefore, to qualify for Chapter 7 bankruptcy, here are a few things to note:

  1. You must pass the Means test. This looks at your income, assets and expenses.
  2. Also, cannot have completed a Chapter 7 in the past eight years or a Chapter 13 bankruptcy (the second most common type of bankruptcy. It involves the creation of a repayment plan to pay off creditors.) within the past six years.
  3. How low is your disposable income? If your disposable income is too high, you might need to take another look at Chapter 13.
  4. Do you have a previous case of filing bankruptcy?
  5. To qualify, you must be an individual, partnership or business entity.

It is important to note that some types of unsecured debts usually aren’t discharged through a Chapter 7 bankruptcy, including:

  • Child support
  • Alimony
  • Student loans
  • Some tax debt
  • Homeowners association fees
  • Court fees and penalties
  • Personal injury debts you owe due to an accident while you were intoxicated
  • Unsecured debts that you intentionally left off your filing.

In all if you are considering filing for bankruptcy, specifically the Chapter 7 bankruptcy, do your due diligence and decide if it is the right fit for you. Declaring bankruptcy is not always a smooth sail. However, may it give you the clean slate you sincerely seek to do right by you.

More: The Difference between Chapter 7 and Chapter 13


More Advice for Homeowners:

Can Mortgage Forbearance Hurt Your Credit?

Can Mortgage Forbearance Hurt Your Credit? and why

As we all know, the world is currently experiencing a financial downturn due to the ongoing pandemic, which has directly affected millions of jobs. As such, a lot of homeowners are bothered concerning their mortgage payments.

There have been some incentives by mortgage providers to soften the impact of payments for a period of time. This indeed was created by the Government to enable mortgage forbearance. So what then is mortgage forbearance?

What is Mortgage Forbearance?

Basically, forbearance is when a mortgage lender grants you some time or lets you pay up your mortgage at a lower rate. This method isn’t meant to scrap your payments as you would definitely be paying the reduced or paused payment back.

A lot of times, people mistake forbearance as a form of forgiveness, but this is entirely false. The bad thing about it is that even though you are let off from payments temporarily, the accumulated bill, which you owe may come in at once.

For better explanation, take for example your lender grants you six months of not paying up your mortgage. Once you reach your forbearance period, the accumulated six months, which wasn’t paid may appear in just one month.

Now, the forbearance isn’t intended for everyone. If you feel the need to exercise forbearance, you simply have to make it known to your mortgage servicer.

Can I enter a forbearance agreement?

The choice of entering a forbearance agreement is entirely up to you. Ideally, it would be unwise to enter into a forbearance agreement knowing full well that your household finances permits you to continue paying up your mortgage. If you follow up with payments without going through on the forbearance agreement, you would be eliminating the additional interest accrued.

Related: 3 Reasons Homeowners May Need Counseling Even After Owning a Home

Why mortgage forbearance hurts your credit

You should note that mortgage forbearance can have a negative impact on your credit. Most especially when you have agreed to the terms and conditions of making payments. Should you default either in skipping or making partial loan payments, then you would fall into a state of delinquency.

Delinquency oftentimes can have a major impact on your credit score, especially the fact that they are recorded on your credit report.

With the ongoing covid-19, which is indeed a special circumstance, mortgage payments, missed can be considered as technical delinquencies.

For this reason, mortgage lenders have the right to report such cases to the credit bureaus, but don’t necessarily have to. In order to prepare better, it is important to let your lender give you a proper insight in regards to their policy, so as to be better prepared for any outcome.

In addition, credit card forbearance can be damaging to your credit score in an indirect manner. Also, should you fail in making regular payments, especially when your card issuer has extended forbearance,  the report you will likely get can hurt your credit score.

In conclusion, while it is important to get a mortgage forbearance, you should be fully ready to resume payments at the agreed time. You necessarily don’t want a closure of your account to be made known in your credit report.


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3 Reasons Homeowner Counseling May Be Good Even After You’re a Homeowner

3 Reasons Homeowner Counseling May Be Good Even After You're a Homeowner

As a young prospective home buyer, you are always advised to seek the counsel of professionals. Experts like real estate agents, accountants, even architects, are all important during your search for a perfect home to start your new life and raise your family.

But there is one professional who is the most important as they help you decide on the right time to buy a house if you should or can buy a house, and what kind of house payment your income can handle, they are Homeowner counselors.

Homeowners are a great help when looking to make a home purchase, but unlike what most people think, they are also especially useful when you have purchased your home.

Here are three(3) ways Homeowner Counseling can be of assistance to a homeowner:

  • Counseling on FHA loans

If you are having financial difficulties and in need of a loan you will need an advisor on how to go about it. Homeowner counselors provide professional advice to persons having problems with making their mortgage payments, facing foreclosure, short sale, or nigh on bankruptcy.

You will be provided counsel on providing documents to prove eligibility for second chance plans like the  FHA’s “Back to Work” loan program. Your homeowner counsel will put you through the preparation process by assessing your debt levels, educating you on the mortgage insurance, and its process of application.

  • Counseling on Reverse Mortgage

This is an issue that is popular among the elderly section of the population. It has become increasingly popular among seniors who have equity in their homes and want to take advantage of it to supplement their normal income. This step though is tricky and certainly not appropriate for everyone, as there are addendums attached to these types of withdrawals.

The only reverse mortgage legally insured by the government is HECM, the Home Equity Conversion Mortgage, and it is only available to an FHA approved lender. Before applying for such programs as the HECM program, you need to meet with a Homeowner counselor who will help provide information about repayment terms and eligibility.

Your preferred homeowner counselor will also advise you on the implications financially of these types of mortgages. Homeowner counsel will also provide you with alternate options to reverse mortgage and determine if taking this route is the best decision for you and your finances.

  • Advisory services on Foreclosure

According to the statistics, the rate of foreclosure filings is getting lower but many people still face the possibility of losing their homes due to delinquent payments. Working with homeowners counsels will help solve chronic delinquency and increases the chance of avoiding foreclosure. They help to educate you on wiser ways to go about your mortgage payments and save money while doing it, and also put you through a program to improve your knowledge and maybe save your home.

Related: Can you Refinance a Mortgage on a COVID Forbearance Plan?

Homeowner counseling apart from helping people make the best decisions on house purchases also help people avoid homelessness. They assist you in getting loans and taking advantage of allowances and exceptions in the law for homeowners. So ensure to keep in touch with your homeowner when you have a home-related problem and if possible, before you have any issues. Call us today for great references on homeowner counseling in the Western Washington Area.



Advantage Legal Group
Bellevue Bankruptcy Attorney Bellevue Washington Lawyer

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What Documents Do I Need to Start a Mortgage Forbearance?

What Documents Do I Need to Start a Mortgage Forbearance?

With the recent coronavirus that hit the world really hard, most people have been forced to face untold hardship. This isn’t something that was bargained for by anyone, it just happened and everyone needs to adjust to the changes in the economy. The pandemic has affected the economy so badly that most people are worried sick about where their next mortgage payment will come from. However, the good news is there is always a way out because you can talk to your lender to grant you a forbearance agreement. It is an option open to everyone who has to pay their monthly mortgage payment, this way you can avoid being penalized for late payment or the foreclosure of the mortgaged property.

What is a mortgage forbearance?

Mortgage forbearance is an agreement between you and the lender to either reduce your mortgage monthly payment or defer the payment completely for a period of time. This forbearance is mostly requested by homeowners who are financially trapped and are not able to keep up with their mortgage payment. However, forbearance does not mean you won’t pay your loan again, you will still pay the amount you were not able to pay at a later date. Due to this pandemic, lenders have given borrowers a long-term forbearance agreement so they can deal with their financial problems.

While you are trying to get a forbearance, there are some documents you will be needing to give to your lender before your forbearance can be granted.

Documents needed for a mortgage forbearance

The documents needed for a mortgage forbearance actually differ by the lenders, which means you need to find out from your lender what documents you need to tender so that your application will be granted.

Application letter: Although requirements vary, but you are most likely going to submit an application letter stating your request. This application can be either oral or written because some lenders would prefer you to call them or send an online application.

Recent mortgage statement: You will need to present your most recent mortgage statement to your lender as proof that you have been keeping up with your mortgage payments to date.

Estimated monthly expenses: An estimate of your monthly expenses will also be required by your lender before they can grant you audience and listen to your plea for a forbearance.

Explanation of your financial situation: Since a poor financial situation is a reason why you need a mortgage forbearance, you would be asked to explain how bad the situation is for you. If you are out of a job or ill or any other situation, you will need to explain to your lender and in most cases show them proof of how bad things are for you so you can be granted the mortgage forbearance.

The documents listed above are what you will need to apply for aa mortgage forbearance, however, it is advised that you start the process on time so you don’t have to miss out on any payment when your forbearance has not been approved. Things are a bit difficult in the world currently and it wouldn’t hurt if you can apply for a mortgage forbearance to ease the burden of paying a loan off you until you can find your feet again.


Advantage Legal Group
Bellevue Bankruptcy Attorney Bellevue Washington Lawyer

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How Low Will My Credit Drop After a Short Sale or Foreclosure?

How Low Will My Credit Drop After a Short Sale or Foreclosure?

With credit scores, one can easily predict the possibility of you making payments on time, paying off loans, and helping a lender determine whether you are a risk. Credit scores are determined by an individual’s lending history and ability to repay and manage debts based on the agreement. Factors like letting your mortgage payment slide, failure to make timely payments tend to affect your credit score. There is every tendency for your credit score to be impacted if you suffer a foreclosure or short sale, which will, in turn, make you a potential risk for a lender.

If you are thinking of taking a short sale or foreclosure for your home, after reading this, you will become aware of how much your credit score could drop. However, at this point, it is necessary to consider the meaning of short sale and foreclosure



With a short sale, you have the opportunity of selling your home and using the gains or proceeds from the sale to pay off your mortgage irrespective of whether the profits don’t make up the full balance. When you attempt to sell your home for even less than you owe in a short sale, the lender earns the proceeds. Not every lender will be open to the idea of a short sale, and homeowners have to be at least 90 days late for the lender to be open to that idea. In some cases, lenders might choose to forgive the unpaid balance on the mortgage or not. In some states, certain laws allow lenders to seek deficiency judgments, which ensure that you pay the difference between the balance due on the mortgage and the sale price.



There is every chance for you to be faced with a foreclosure when you fail to make your mortgage payments, and the lender chooses to seize and sell your property in other to make up for their financial losses. It takes a lender four missed payments to result in foreclosure proceedings. The foreclosure process tends to vary by state, but if you are going to be faced with a foreclosure, then you would receive a notice most likely through a mail.



A short sale will most likely affect your credit score and not just by a small margin. It is capable of dropping it to as low as 100-150 points and that depends on where you started; your credit score will only fall more based on how high it was. Short sales are regarded as the worst things that can affect your credit score. Credit scores tend to range from 300 to 850; for example, if you have your credit score between the range of 750-800, it can easily reduce to 150 points or lower in a short sale. If you are within the range of 650-720, after a short sale, you could lose 100 points and fall into what is commonly referred to among lenders as the subprime category.



Foreclosures tend to have more effect on credit scores. Now according to FICO, based on a person’s starting scores, a fair number of homeowners who go through a foreclosure experience a drop in their credit score from between 85 and 160 points. An individual with a good starting score of 680 could reduce to between the ranges of 579 and 594, which is regarded as a fair or poor score range, and someone with an excellent score of 780 may reduce between 620 and 642. Foreclosures can affect a consumer’s credit for as long as seven years.

It is necessary to understand this because a low credit score can make it difficult or impossible to borrow. Plus, as your credit scores drop, your interest rate will only continue to increase even if you are eligible for credit loans.


Advantage Legal Group
Bellevue Bankruptcy Attorney Bellevue Washington Lawyer

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How Bad is Bankruptcy Really?

How Bad is Bankruptcy Really?

Filing for bankruptcy means telling the judge that you cannot pay off your debts. After this is done, the court checks your assets and liabilities then decides if you are eligible to have your debts cancelled or discharged. If it is seen that you have no means to pay back, they let you declare bankruptcy. When this is filed, you become immune to foreclosure on repossession of your property, home, or other wages. When this is successfully done, the people you legally owe have no right to collect money from you temporarily. Bankruptcy cases differ and the court can tell you to pay a few debts notwithstanding. It is safe to note that bankruptcy does not cover for student loans, child support, alimony, taxes, fines, and items purchased before filing for bankruptcy like boats, houses etc.

Filing bankruptcy is not such a great idea. For starters, the process is tasking. To file for bankruptcy, you will have to

  1. Create organized paperwork listing all the debts. Each debt has its own paperwork, you would have to get a legal group like ours to run you through the process. We have a bankruptcy attorney who specializes in helping you correct errors that can get your case dismissed.
  2. A financial coach will always be suggested for you because you would have to check other options before settling for filing for bankruptcy. It is okay to call the creditors and talk about reducing the interest rate. A financial coach would also suggest things like getting another job to you, moving into a smaller and more affordable apartment.
  3. Advantage Legal Group would always offer professional help to you, the case might leave you filing a Chapter 7 or Chapter 13 bankruptcy. As an individual, this would not be clear to you and our services will always be here to guide you.

You deserve financial freedom and we can help you understand your options. Bankruptcy can tell on your emotions because, once you file for one, it becomes a public domain. Your name and personal information become easily accessible to potential clients, employers, banks, businesses and all the details of your bankruptcy will be known.

Once bankruptcy is filed, you will not be able to take loans anymore, mortgage loans can take about four to five years to qualify. The only way you could get a new home is if you decided to pay in cash.

The good side to filing a bankruptcy is that you might be allowed to retain ownership of property. Even though a bankruptcy record stays in your file for about 7-8 years, once your dischargeable debts are paid off, your record becomes clear. You will be able to move forward and rebuild your credit. Bankruptcy is always the last option to pay off debt and stop creditors from harassing you with calls, letters, etc.

If you have questions about filing bankruptcy in Washington State including Bellevue, Redmond, Kirkland and Seattle, then its best to give the attorneys at Advantage Legal Group a call to discuss your financial situation.



Advantage Legal Group
Bellevue Bankruptcy Attorney Bellevue Washington Lawyer

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What Do You Lose if You Declare Bankruptcy?

What Do You Lose if You Declare Bankruptcy?

Before you finally go to the judge or court to file for bankruptcy, the major worry to have is what you stand to lose. It might be your house, property, a potential job, or client as the record of your bankruptcy is available to public access. Bankruptcy is the last resort when the debt starts to choke you and the creditors endlessly harass you with unwanted calls and letters. Filing for bankruptcy leaves you at a temporary discharge from the creditors but what does it do to your credit record? What do you stand to lose after the judge approves your case?

Losing your property depends on how well you understand chapter 7 and chapter 13 when filing a bankruptcy. Chapter 7 will require that you sell some of your assets to pay off a part of the debt. The law guarding chapter 7 can be better explained to you by one of our attorney lawyers at Advantage Legal Group. This is called the liquidation and some of your property would be taken with exemption to retirement accounts, car, and house. This also allows you to relieve your debt by surrendering some of the assets belonging to you. This is meant for people with limited incomes and that is why the property is not taken. Companies and individuals can file this, and the discharge takes about three to five months to be received.

Chapter 13 bankruptcy involves the court giving you a repayment plan which protects your property if you successfully complete this plan. When this payment is completed, and some creditors are laid off, the court discharges other bills like the credit card and medical bills. This allows you as a debtor to keep your property and catch up on missed mortgage and cars. Chapter 13 allows the individual to make monthly payments for three to five years. This will require you to sell off some property to pay off debts.

The bankruptcy rules differ from state to state and there are set limits for trustees and what you can keep are within these limits called personal bankruptcy exemptions. Being able to keep your property depends on the pay you make monthly to your creditor. You can always keep your property, but it does not stop you from always falling behind on credit cards. The decision to sell your house is personal and would not be blamed on the creditor. It is natural to worry about your family and house and what you need is a financial coach or legal group like Advantage Legal Groups for consultation and advice. To avoid such fear over losing your property, chapter 7 serves as the best option for immediate debt relief.

No one wants to lose their property as what we all need is financial freedom. Our help runs from businesses to individuals and families, this is the right time to contact us if you are in Washington state including Bellevue, Redmond, Kirkland, and Seattle. Let us assist you in a difficult time as this one.


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How Far Behind Do I Have to Be For Mortgage Forbearance?

How Far Behind Do I Have to Be For Mortgage Forbearance?

Under normal circumstances, there are policies owned by all lenders, and that is what you should be working with. However, if you are finding it difficult paying you mortgages either due to lose of job or increase in costs. There is a 15-day grace period, and if you are able to meet up and make payment, you are all good but if you happen to miss your second payment, it is said that you have defaulted and you should expect a change in your mortgage servicer.

Once you have noticed that you won’t be able to meet up with your payment, it is advisable to contact your lender and discuss mortgage forbearance.


This is an official agreement between the home owner (you) and the lender, if for any reason you are unable to pay your monthly mortgage amount. Your payment requirements will be frozen by the lender for a period of time. After the agreed period elapses, you are expected to continue your normal monthly payments and you will also pay back all balance owed, including all interests gathered during your grace period. This sounds like a great deal especially to those who have lost their jobs during this Coronavirus crisis, it helps you skip some or all of your monthly mortgage payment for as much as a year. But it should be considered as your last resorts, and should be avoided if possible because while it can be a life line for a short period, it will undoubtedly lead to credit issues.

More: Is Mortgage Forbearance a Good Idea?



Contact your lender and inform them about your present crisis financial state. Some of them have online chat options or a forbearance form you can use also. Some key information and documentation will be needed by your lender, so be prepared to provide these:
• An outline of your financial state, also the cause of the financial issues and when you think all be fixed back to normal.
• Mortgage loan or your account number
• Your monthly income before taxes
• Monthly expenses clearly itemized

Remember, that your lender wants you to keep your home and keep paying your mortgage so they will do their best to help, don’t be afraid to ask for help.


The lender must follow some steps before granting you the forbearance agreement. They might ask you to make some deductions on your monthly expenses, if they notice some things that are not needed on your list; you should be able to explain to them why those things cannot be removed from your list, you will also prove that you are making efforts to get a new paying job.


Your lender will want to confirm your financial crisis, provide them with your unemployment verification letter with detailed information. Follow up your lender until a negotiator or loan officer is assigned to your account, which you will work with till the end of the process.


After you are assigned with a negotiator, you have to wait for approval, sometimes it takes several weeks but ensure you follow up with your negotiator to show that you are serious with your request.


Once you are approved, a letter with detailed terms of the agreement will be drafted by the negotiator, with the forbearance period time frame, amount to be paid during that period, the interest rate of the amount owed and how to repay the outstanding balance after the period.


If you are satisfied with the terms, sign the agreement form and return to the lender. Your forbearance period has commenced after submission. After this period your payments return to normal, with an additional payment to cover your outstanding balance.

Assuming you fail to meet up with the terms of forbearance, your home will likely go into foreclosure. This is the last step before you lose ownership of your home.

For legal advice and consultation,  as well as information regarding mortgage modification or mortgage mediation services Please give us a call for a free consultation to discuss your specific financial challenges during this difficult time. You can reach us at 425-452-9797