Home Debt Settlement Loan Modification

Phoenix Loan Modification Attorney

Learn more about loan modification in Phoenix, AZ, and the Greater Valley Area. Call a lawyer at (602) 466-9631 to learn more today.

Affordable Debt Relief in Phoenix

At Hilltop Law Firm, we offer practical solutions for all types of financial issues. Cy Hainey at Hilltop Law Firm is a bankruptcy and debt relief attorney who has been helping people in Phoenix overcome their debt for over 10 years.

We’ll find the debt solution that’s right for you so that you and your family can get back to enjoying the activities that make Phoenix such a fun place to live, like visiting the Arizona Science Center, the S’edav Va’aki Museum, or Encanto Park.

To learn more about loan modification and other debt-relief options, give us a call at (602) 466-9631 today.

How Does Loan Modification Work?

A loan modification is a change in the terms of your original mortgage. It does not pay off your current mortgage and replace it with a new one like a refinance – it directly changes the conditions of your existing loan. If you are facing financial hardship and having trouble making your mortgage payments, loan modification may be the solution for you.

The only way to get a loan modification is through your current lender. They hold the mortgage on your property and must approve the terms. The types of changes you may be able to make in a loan modification include:

Mortgage lenders are under no obligation to accept requests for modification. Generally, it is more difficult to get a loan modification than it is to refinance. Lenders each have their own standards for what is required, and so do investors, such as Fannie Mae and FHA. To qualify for a modification, you will need to show evidence of hardship.

How Bankruptcy Allows You To Modify Loans

After reviewing your situation, a Phoenix bankruptcy lawyer will advise on whether you want to negotiate directly with your creditor or file for bankruptcy.

There are two types of bankruptcy that allow personal debt to be restructured: Chapter 7 and Chapter 13. If you decide to file for bankruptcy, your attorney will recommend the best option based on your income, the amount of debt you have, and other factors.

When considering debt relief solutions, it’s important to consider how different types of debt are treated under a bankruptcy settlement:

Car loans. Your car or truck may be repossessed without notice if you fail to make a payment. Your attorney will recommend a strategy to restructure your payments. If you file for Chapter 7 or Chapter 13 bankruptcy, there are options that may allow you to keep your car depending on which type of bankruptcy you choose and the amount of equity you have.

Personal loans. Unsecured personal loans may be renegotiated or discharged under Chapter 7 bankruptcy or renegotiated under Chapter 13 bankruptcy. However, some types of debt, such as student loans, cannot be discharged.

Real estate tax liens. Property taxes incurred before the commencement of a bankruptcy case may be dischargeable, but they must be paid if you want to keep the property on which the tax was levied.

Income taxes may be dischargeable under a bankruptcy settlement if the debt is over three years old and you have timely filed tax returns for the previous two years before filing. Fraudulent tax returns are not dischargeable.

Civil lawsuit judgment liens may be discharged as part of a bankruptcy settlement. However, certain types of judgments cannot be discharged, including criminal fines or restitution, drunk driving-related debt, judgments for willful or malicious injury, and money, goods, or services obtained by fraud.

Sales tax and payroll taxes are not dischargeable in bankruptcy cases.

The Loan Modification Process with a Bankruptcy Attorney

Loan modification agreements may significantly reduce your monthly payments and overall debt, but your creditors are unlikely to consider this option unless you have an experienced bankruptcy lawyer negotiating on your behalf. Your attorney will review your overall debt burden and craft proposals to your creditors that align with your ability to pay.

In many cases, it makes sense for creditors to cut their losses and agree to accept less than the total amount a debtor owes. Most creditors would prefer to receive partial payment of the money now instead of waiting to receive a potential bankruptcy judgment in the future.

There are practical reasons why creditors prefer to renegotiate loans. Using legal enforcement to collect the money is costly and difficult. Another reason why creditors prefer to renegotiate is that it makes it easier for them to offer new loans to other customers.

The Benefits of Bankruptcy Settlement Loan Modification

There’s a lot to consider when deciding if bankruptcy is the best strategy for addressing your debts and restoring your financial health. The benefits of using bankruptcy to reduce and restructure your debt burden include:

  • Preserving assets
  • Keeping your car and home
  • Halting the foreclosure process
  • Improved financial stability
  • Reducing your overall debt burden
  • Reducing monthly payments

How a Phoenix Bankruptcy Lawyer Can Help

At Hilltop Law Firm, we can assist you with both loan modification and Chapter 13 bankruptcy. After a free consultation, head attorney Cy Hainey can recommend the best debt relief solution for you. Our firm takes pride in offering top-notch legal services at affordable rates. We also offer easy payment plans with no money-down bankruptcy options.

A home is not something your family can do without. If you need skilled legal help keeping your home safe, contact us at (602) 466-9631 today.

“Settled my debt quickly and for less than I could have imagined! I would definitely recommend”
- Chelsea