Can a Lawyer Help You Obtain a Loan Modification?
You may be experiencing financial difficulties and considering a bankruptcy filing to get a fresh start. However, your problem may be limited to one or a couple of loans that you simply can’t afford to pay. Can an attorney help you renegotiate the terms of those obligations such that they become affordable and you don’t have to seek protection in bankruptcy?
The answer is yes. Furthermore, most lenders would prefer to restructure your loan than have you file for protection in bankruptcy. Once you file for bankruptcy protection, your lender is prohibited from calling, writing or taking any legal action outside of the bankruptcy proceeding to attempt to collect on the loan. During the period of the bankruptcy, you generally don’t have to make payments and cannot be subject to legal action. In addition, if you file a bankruptcy petition, your creditors (including your lender) will likely incur legal fees to protect their interests.
An experienced bankruptcy lawyer will know how to work directly with your lender to work out new payment arrangements that lower the interest rate or extend the repayment period, or both. In many instances, your attorney can get late fees and penalties waived, and may be able to get any past due amounts folded into the new principal balance.
You can, of course, try to work directly with your lender. Your lender, however, doesn’t have your best interests at heart, but is only trying to protect his or her organization’s best interests. An attorney is duty bound to zealously represent you, and will make certain that you understand all your legal rights. Your lender may limit discussions to a single option, one that is best for the lender. A lawyer will make certain you understand all your options, and will fight to get the best outcome for you.
Contact John Hargrave and Associates
We have provided comprehensive counsel to individuals in and around Barrington, New Jersey, since 1977. To schedule a free initial consultation, contact our office by e-mail or call us at 856-759-6022 (toll free at 866-662-3191).