Thousands of people have been financially affected by the current health crisis. If you’re one of the many people financially struggling during the COVID-19 pandemic, you might be having a hard time paying off your mortgage debt. Thankfully, there are options available to you. Our Indianapolis bankruptcy lawyers explain what you can do if you seek mortgage debt relief.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy allows you to catch up on missed mortgage payments and restructure your debts through a repayment plan. When you complete your payment plan, you might receive a Chapter 13 discharge that eliminates most of your remaining debts. This option will allow you to keep your home while giving you more flexibility to pay off your mortgage debts. Our Indianapolis bankruptcy attorneys can help you with your bankruptcy filing to ensure that you get a payment plan that works for you.
Another way to get mortgage debt relief is with foreclosure. This is when your home has collateral in the mortgage, and it is seized by the lender for nonpayment. However, this option won’t allow you to keep your home.
Mortgage Forgiveness Debt Relief Act
The Mortgage Forgiveness Debt Relief Act of 2007 allows taxpayers to exclude income from the discharge of debt on their principal residence. What qualifies for relief includes the debt reduced through mortgage restructuring and the mortgage debt forgiven in connection with a foreclosure. This provision applies to debt forgiven in 2007 through 2017, and up to $2 million of forgiven debt is eligible for this exclusion.
Indianapolis Bankruptcy Attorneys: (888) 713-5148
If you’re struggling with mortgage payments due to the COVID-19 pandemic and you don’t think you will be able to handle your debt, our team at Jackson & Oglesby Law LLC is here to help you. We can help you file for debt relief under Chapter 13 bankruptcy, which allows individuals the opportunity to become debt-free by gradually repaying debt without the burden of creditor harassment. Our team has the skills, experience, and knowledge needed to help you obtain your desired outcome.