Success Stories | How Bankruptcy Made a Positive Impact on Lives

Foreclosures and Repossessions

The current economic situation makes it more and more difficult for everyone to be able to afford their houses and their vehicles. Jobs are being eliminated, and pay raises are decreasing or disappearing. In addition, most houses are decreasing in value, and vehicles depreciate each year at a significant rate, increasing the difference between what we owe on these houses or vehicles, and what they are currently worth. A filed bankruptcy immediately prevents a foreclosure or a repossession. If your car has already been repossessed, a bankruptcy may allow you to get your car back IF your case is filed quickly enough. Here are some ways TBC has helped our clients to avoid losing their homes and their vehicles. Their names have been changed, but their situations were absolutely real.

Frank & Mary´s Story
Fran´s Story
Lucy´s Story
Cathy´s Story

Frank & Mary´s problem:
Just reaching their retirement age, Frank and Mary were struggling to keep up financially already. They had had two cars repossessed, and owed the bank for the difference between the values of these cars and the amount owed on them. They would no longer be able to afford their house once they retired and their income was lowered even further. They knew that they would not be able to sell the house for enough to pay off their mortgage. In addition, they had credit card debt that they were struggling to repay.

TBC´s solution:
Their attorney fully reviewed Frank & Mary´s financial situation and determined that, before retirement, their income was too high to qualify them for a Chapter 7 bankruptcy. However, once they retired a couple of months later, their lowered income would qualify them for a Chapter 7. Frank & Mary filed a Chapter 7 after they retired, and were able to surrender their house and eliminate the deficiencies they owed to the bank for their two repossessed vehicles and the house, as well as their credit card debt. The Chapter 7 allowed Frank & Mary to discharge over $100,000 in debt, making it possible for them to afford to live on their retirement income.

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Fran´s Problem:
Fran had a medical condition that kept her off of work for an extended period of time. As a result, she fell behind on her house payments. When she was finally able to return to work, she was so far behind on these payments that she could not catch up, and the bank began to foreclose on the house. In addition, she was burdened with about $20,000.00 in medical bills.

TBC´s Solution:
Fran came in to see a TBC attorney just 11 days before her house was to be sold on foreclosure. She retained us and brought in all of the necessary documents on the next day, and her Chapter 13 case was filed a few days later, stopping the foreclosure and wiping out her medical bills. She paid $475 per month for 4 years, to bring her house payments current. Her children agreed to help her with her ongoing monthly mortgage payment.

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Lucy´s Problem:
Lucy met with a TBC attorney to discuss her options in October, but had not yet made a decision on how to proceed when her car was repossessed in December.

TBC´s Solution:
Lucy immediately retained us and brought us the necessary paperwork, and TBC had her Chapter 13 filed within the week. By that time, the creditor had already moved her vehicle to a site in Indiana. We had Lucy stop by our office to pick up proof of her bankruptcy filing, and we printed out directions to the site in Indiana, so that she could go retrieve her car.

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Cathy´s Problem:
Cathy was a young, stay-at-home mom who home-schooled her children. When her husband died very suddenly, she was left with no source of income while the estate was being opened and settled. Her friends and her church helped out with some of her expenses, but her mortgage company refused to wait for the life insurance proceeds, and began to foreclose on her family´s house.

TBC´s Solution:
TBC filed a Chapter 13 for Cathy, who was able to make a minimum monthly plan payment that allowed her and her children to keep their home. When the life insurance proceeds arrived 4 or 5 months later, Cathy was able to pay off her bankruptcy.

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Don't wait until till it may be too late to seek protection under the bankruptcy law. Schedule a FREE Consultation with one of our bankruptcy attorneys and learn how the bankruptcy law applies to your specific situation. Call TBC today at 314-961-9822

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