Boston Bankruptcy Attorney

Chapter 13 Bankruptcy and New Unemployment

With the current economic situation, many people who may have filed for chapter 13 bankruptcy in the past couple of years might be experiencing great fear over what would happen to their repayment plan in the event that they lose their job. Fortunately, in many cases, a chapter 13 repayment plan can be restructured so that an individual who has lost his or her job will not have to panic nearly as much about losing his or her house because of a payment schedule that is no longer feasible without a job.

The number of people in the country who have lost their jobs increases every day. On a daily basis, various nationwide companies have been announcing layoffs that number in the thousands, per company. Very few industries have remained unharmed by a crisis that started with the subprime mortgage market going under.

Because so many people have lost their jobs and will lose their jobs, courts may become more willing to renegotiate a repayment plan for a person. Banks should also be more willing to restructure since it is in their better interest to receive something than to be left with a house that won’t be sold. In the current economy, a bank is much more likely to lose money in the foreclosure process than through restructuring.

Contact a Boston Bankruptcy Lawyer

For more information on the possibility of restructuring a repayment plan or on filing for chapter 13 bankruptcy at all, contact the Boston bankruptcy lawyers of Joshua Spirn and Associates at 1-800-975-5346 to discuss your case and to determine the best option for you.