Due to the construction slump, his union furloughed him for a number of months after each job. What types of people seek bankruptcy help? His wife was lucky enough to be able to take pension and annuity loans to fill the gap. But after many years, her four monthly retirement loan repayments took so much of their pay that there was not enough money left to live.
Things became worse because they did not pay their mortgage. Although they were able to eventually modify the mortgage, the periods of non-payment of the mortgage eliminated most of the customary "mortgage interest deduction" on their tax returns, resulting in higher income taxes which they could not pay.
In addition, they fell behind on the reduced, modified mortgage payments, and the bank refused to accept their partial payments!
We solved the problem by proposing a chapter 13 "step-up plan". Initial payments are low, and as each pension or annuity loan is paid off, the money used to pay that is, instead, shifted to the chapter 13 Trustee to pay tax arrears, mortgage arrears, and other debts.
Although the wife came to my office embarrassed and frightened, she left with a smile and a workable plan to report to her husband. Let us help you devise a strategy to solve your special problem.