07/26/2022
We wanted to share a bankruptcy client success story. Today our firm confirmed a Chapter 11, Subchapter V case (typically reserved for small businesses but can also be filed by individuals). Our client, who is of retirement age, owns and operates some multi-unit rental properties to make a living, one of which also serves as her primary residence. Prior to filing bankruptcy, our client's home was in foreclosure with arrears of nearly $200,000.00 due in part to some circumstances that, in my opinion, were out of her control. Through the bankruptcy, we were able to successfully negotiate with the mortgage lender on her home, and have the entire portion of the arrears deferred to the end of the loan as non-interest-bearing principal which does not mature for 15 years. Not only did this permanently stop the foreclosure and allow her to become current on her mortgage, it will likely save her tens of thousands of dollars in interest and ensure that it is feasible for her to keep the property long term and profitable as a rental property. This was so important for her, not just because it was her home, but it is also serves as one of her primary sources of income. The case was also confirmed in just over four months which is fairly quick for a Chapter 11 case. Our client was thrilled and we couldn’t be happier for her. We wanted to share because bankruptcy often has a negative connotation but it can be an immensely powerful tool that can often have very quick and life changing results under the right circumstances. These are the types of cases that serve as a constant reminder of why we do and love the type of work that we do. ,
