You are in: Home > Bankruptcy Law

Who Wins the Battle to Save Your Home? | Loan Modification vs. Chapter 13 Bankruptcy

16th March 2010
By JamesBrown in Bankruptcy Law
RSS Legal RSS    Views: N/A

Securing protection from foreclosure for you and your family is probably on the top of your list of priorities if you've fallen behind. After all, do you really want to walk away from a house you've spent years building into a home? If you narrowed down your options, you are probably debating between Missouri and Illinois Chapter 13 bankruptcy or loan modification. Which one will be best for you and your family?

Loan Modification has changed in the last year—and not for the better. A year or two ago, I may have recommended a loan modification for those who are in a temporary situation like a job change or small medical emergency that had adjusted their budget in the short term. But with the latest housing crisis and dismal performance of the loan modification, I'm not sure I would recommend it at all, for any situation. Even the biggest lender in America has only approved 4% of requests--leaving the other 96% to fend for themselves.

Typically, you must first fall behind on your mortgage payment to even be eligible for the program. This has led to people purposefully falling behind on their mortgage in order to qualify. Since the waiting line for modification requests is so long, they are often so far behind by the time people are told that they can't get the mortgage modified that it is impossible to catch up.

On the other hand, Chapter 13 bankruptcy in Missouri and Illinois gives homeowners a permanent solution to debt. Even if you think your financial situation is temporary, you may be surprised to find out how quickly and far you can fall into debt in just a short amount of time. Even what seems like a small change in your budget could lead you down into the bottomless hole of debt. You may only be able to get out of debt by finding a solution that permanently handles your debt.

A St Louis or Wentzville Missouri bankruptcy attorney can help you reorganize your debt, save your home, and get back on your feet. Bankruptcy is a very powerful federal law that forces your creditors to take less money over a longer period of time—and prevents them from taking action against you like repossessing your car, harassing you and your family, or taking your home.

Still wondering if bankruptcy is right for you? Look for free articles, bankruptcy faq, and even free publications from reputable bankruptcy attorneys in your area. The sooner you start your education, the likelier you are to be able to save your home.


Missouri Bankruptcy attorney James Brown has been working to relieve the debt of hard-working American families for over 15 years. He has dedicated his career to educating consumers about options for debt relief and has released 5 publications, including, "Get Out of Debt: Secrets Your Creditors Don't Want You to Know." You can request a free copy at
This article is free for republishing
Bookmark and Share

Ask a Question about this Article

powered by Yedda