New Orleans Bankruptcy Lawyer Case Study: Surrendering an Underwater House with Chapter 7 in Kenner, Louisiana

Husband and wife in mid-50s living in Kenner, Louisiana came in to look at bankruptcy related options in connection with the pending foreclosure/Sheriff sale scheduled to take place within approximately one week. We initially looked at efforts to save the home through a chapter 13 bankruptcy. It's possible to restructure the mortgage arrearages through a chapter 13 plan payment and spread the arrearage out over a 60 month repayment plan. Unfortunately, because they were almost $60,000 behind on their mortgage note retaining the property through a chapter 13 bankruptcy was not going to be feasible. They had limited income and cannot afford to resume the regular house note payment plus pay the chapter 13 plan payment which would have been approximately $1000 per month. Further, the house had declined in value and the clients now owed significantly more on the mortgage then they could sell the house for. The clients decided that it was in their best interest to file a chapter 7 bankruptcy through which they would surrender the home to the mortgage company and wipe out the significant deficiency balance that would result from the foreclosure/Sheriff sale. The only other significant asset clients have is an automobile with a car note that they are current on. In addition to discharging the deficiency balance from the foreclosure/Sheriff sale, the clients will also be discharging approximately $30,000 of unsecured debt made up of medical bills, credit cards and signature loans.
The attorneys and lawyers at the bankruptcy law firm of Kirkpatrick and Associates have helped good people through bad times in Southeast Louisiana since 1999. The parishes we serve are Orleans, Jefferson, Assumption, Lafourche, Plaquemines, St. Bernard, St. Charles, St. James, St. John the Baptist, St. Tammany, Tangipahoa, Terrebonne and Washington. So whether you live in New Orleans, Metairie, Gretna, Avondale, Chalmette, Belle Chasse, Slidell, Covington, Mandeville, LaPlace, Houma, Thibodaux, Luling, Ponchatoula, Hammond, Amite, Kentwood, Franklinton or Bogalusa, our bankruptcy lawyers and attorneys are here to help.