WOERMER LAW FIRM
1037 Main Street, Watertown, CT 06795
(860) 274-9212
Bankruptcy and Mortgage Modification

Attorney Matthew P. Woermer has represented debtors in bankruptcy matters since 1991.  He will personally meet with you, free of charge, to discuss what legal rights and options that are available to you.  You should be aware that Connecticut has enacted a “homestead Act” enabling homeowners to keep their home even if they have substantial equity.  Also, in 2005 the federal bankruptcy rules were overhauled.  We find that most of our client’s qualify for relief under the new provisions.  The new provisions have made the requirements and paperwork for bankruptcy into a potential minefield.  We are quite experienced in these issues and look forward to safely and professionally guiding you through this process.  In bankruptcy, detail and preparation are key elements to a successful filing.  Please have detailed lists of your debts with you for your consultation.

 

Debtors – If you answer yes to any of these questions, we can help you:

 

§         Do you owe more than you can pay?

§         Are you having trouble paying credit card, medical, or other bills?

§         Is a lender threatening to foreclose on your home or other real property?

§         Are you behind on your car payments?

§         Do you need to stop creditors from taking action against you?

§         Do you need to discharge debts?

§         Did a personal or health crisis temporarily halt or reduce your income?

§         Do you have substantial equity in your home but have difficulty with payments?

Can I save my home?
        Most of our client's are able to keep their homes.  Sometimes, client's have significant equity in their homes, but are threatened by lawsuits, debt collectors or attachments.  The new revisions to the bankruptcy code provide powerful tools to eliminate these threats, allowing you a fresh start.  Sometimes people do not have significant equity, however, wish to preserve their home, we can often accomplish this through a chapter 7 or chapter 13 filing.  Sometimes, clients have suffered a temporary situation causing them to fall behind in their mortgage payments, a chapter 13 can force your lender to accept catch-up payments over 3-5 years.
Should I file?
        Without exception, people do not look forward to filing a bankruptcy petition.  Take a step back and put your debt payments versus income on paper.  If you cannot repay your debts within two years, you should strongly consider a free consultation.  Many people have struggled to keep up with payment on their credit cards for years!  They are loyal to their cards and regret possibly terminating their "good relationship".  We then look to see the interest rate that this "good relationship" is based on.  Is 23%-28%, plus late fees, plus overlimit fees a good relationship?  When you call to seek a lower rate or a more affordable payment and are flatly refused, you do not have a good relationship.  These companies regularly screen your credit score, they hire actuaries to evaluate how much debt you can possibly shoulder.  They really aren't interested in a good relationship, they are interested in you carrying the maximum debt load at the maximum cost.  
        When you are hesitant to buy groceries, clothing for your kids or medicine, but timely pay your massive credit card debt, you should reconsider your options.  Take your credit card payments per month, multiply them by 12 months and multiply that number by 9 years (approximate time to repay your debt) this number, while large, only represents the interest payments you will save.  Add the amount of principal on these cards to that debt.  Sometimes the fresh start helps you prepare for retirement, educational expenses and life in general.  My advice is to come in and go over your options.


     Credit card consolidation companies?

          We do not support the use of these agencies.  Usually they promise to work with your card companies for a monthly fee.  Actually, most charge you upfront money, bankroll your payments and take years to effect any real change.  Meanwhile, your credit rating plummets because each card is reported late from month to month.  Stop, come in and see if that is your best course of action.

   
We are a debt relief agency

 

            Bankruptcy otherwise known now as debt relief, constitutes a primary area of practice for our firm.  Both Chapter 7 and Chapter 13 Bankruptcy proceedings are offered to people who are going through financial crisis – to give them the opportunity to relieve themselves from debt and “start fresh” after a period of time.  Bankruptcy can stop foreclosure actions, garnishment, harassment, and collection actions.  It can also stop lawsuits as well as eliminate debts.  By law, once a petition is filed most creditors cannot initiate or continue any lawsuits, wage garnishees, or even telephone calls demanding payment.  Our firm has reasonable fees and we do engage in payment plans.

Mortgage Modification:

     The recent collapse of the lending market does offer confusing options for a borrower.  Prior to any foreclosure proceeding, you should contact your lender and request a hardship package.  The MakingHomeAffordable.Org website is designed to give you options.  Basically, the federal government is giving lenders a financial incentive to reduce your mortgage payment to 31% of your monthly gross income.  The remedies vary, however, at times your interest rate can be reduced to 2.5%-4%, the principal debt can be reduced or the arrearage can be placed to the end of the loan period.

Chapter 7 (liquidation) Bankruptcy

 

A Chapter 7 usually results in a complete erasure of all of your debt.  There may be some debts you wish to keep; we will work with you to accomplish these goals.

 

Ø      Preparing and filing the Chapter 7 bankruptcy petition, schedules, statement of financial affairs and other required pleadings.

Ø      Representing you at the creditor's meetings where the Chapter 7 Trustee appointed to your case asks you questions about your assets and liabilities.

Ø      Our prices are reasonable and competitive, and your first consultation is free! 


Chapter 13 (Individual Reorganization)

 

A Chapter 13, otherwise known as a reorganization of your debt, allows you to avoid some debt and then spread out payments (mortgage, car) on debts that you have fallen behind on.  Overdue debts are usually paid over 3-5 years.

 

Ø      Preparing and filing the Chapter 13 bankruptcy petition, schedules, and other required pleadings.

Ø      Preparing and filing the Chapter 13 plan for Repayment.

Ø      Representing you at the creditors meetings where the Chapter 13 Trustee  asks you questions about your assets and liabilities, and your ability to make Chapter 13 plan payments.

Ø      Representing you at all Chapter 13 plan confirmation hearings held in Bankruptcy Court.

Ø      Our prices are reasonable and competitive, and your first consultation is free!

 

 
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