Chapter 11 bankruptcy can be a useful tool to buy time to pay your creditors.
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.
She was referred by another attorney and also by a former client. Her husband recently passed away, and she discovered that he had not paid either their mortgage or their home equity loan for two years. Even worse, he had secretly taken $65,000 more on the home equity loan than she had been aware of.I concluded that a Chapter 13 bankruptcy would not be the best solution, because she would have to pay the arrears over only five years: something she could not afford to do. Instead, we recommended working on mortgage modifications, leaving the Chapter 13 case as a "safety net" should one or both mortgage modification efforts fail.