Help Stop Military Foreclosure a Mantra for Indianapolis Bankruptcy Lawyer

Posted by Jorja Langslow on Saturday, February 26, 2011 · Leave a Comment 

None of the good bankruptcy attorneys who work in the Zuckerberg bankruptcy law offices likes reading headlines about an increase in military foreclosure, that’s for sure. In these Bankruptcy in Indiana articles, I’ve highlighted the special protections provided by the U.S. government to members of the military who are in debt. As I’ve often stated vigorously to the Anderson, Bloomington, Indianapolis, and Columbus bankruptcy lawyers who work with me, serving our country shouldn’t lead to financial troubles here at home!

First of all, let me explain what a military indulgence is. If you had a mortgage as a civilian, and then entered the military, the Soldiers’ and Sailors’ Civil Relief Act can help you in several ways:

  • Lowering the interest rate on the mortgage to 6% from the time you begin active duty to the day you’re released. (As a debt consolidation lawyer offering bankruptcy information in Indiana, I need to remind readers that this interest rate reduction is not automatically to all service members; you must show that your income was reduced significantly because of leaving civilian employment.)
  • Reducing the monthly mortgage payment amount. (As an Indianapolis
  • bankruptcy lawyer, I explain to clients that this, too, is never automatic – hardship needs to be demonstrated.  It’s important to add, too, that the “arrearage” between the regular payment and the new, lower payment will need to be made up after release from the military.)
  • Allowing qualified buyers to assume mortgages from a delinquent military homeowner.

Sounds like a lot of help to stop foreclosure among the military, doesn’t it? In fact, these measures were a big help. Some 9,000 families who asked for assistance under these government programs were found eligible. Still, more than 20,000 veterans, active-duty soldiers and sailors lost their homes in 2010, the highest number since 2003. The high unemployment rates, in addition to the physical and mental health problems sustained by many military men and women, made it very difficult to get back into the workforce and catch up on their finances.

Even with help from these governmental programs, a significant number of veterans found it necessary to file individual bankruptcy in Indiana, either bankruptcy Chapter 7 in Indiana, or using Chapter 13 bankruptcy laws in Indiana to help stop foreclosure.  Before advising any veteran debtor to file personal bankruptcy in Indiana, though, I help each one explore his or her eligibility for any or all of these U.S. government programs. It’s the least we can do for our veterans!

 

Similar Posts:

Share

Filed under Fix Credit Score · Tagged with Bankruptcy, Military Foreclosure

About Jorja Langslow