Wheaton Loan Modification Attorney

Lawyers for Creditor Negotiations and Debt Relief in DuPage, Cook, Kane, Will, and Kendall Counties

Debt is a significant problem for many families. In some cases, financial issues may cause families to miss payments on mortgages, auto loans, or other debts. In others, unexpected events such as an accident that requires emergency medical treatment can lead to large debts that may seem impossible to repay. For some families, bankruptcy is an option that will allow them to wipe out some or all of their debts. However, bankruptcy may seem like too drastic a step for some families, or it may not be feasible for certain reasons. In these cases, an attorney can help negotiate with creditors to determine whether loans can be modified in a way that will allow a debtor to maintain financial stability.

At McSwain Nagle Giese & Rapp, P.C., our lawyers have more than 100 combined years of experience, and we understand the laws surrounding bankruptcy, loans, and debt relief. We can examine your financial situation and help you determine your options, and if necessary, we will provide you with representation to help you negotiate a modification of your mortgage or other loans. With our help, you can find the best way out of your situation and be able to pay off your loans successfully.

Options for Loan Modification

In secured debts, such as home mortgages or auto loans, the assets being financed or other property owned by the debtor will serve as collateral. If the debtor fails to make payments, the creditor may repossess property or initiate foreclosure proceedings on a home. To avoid this, or to find a way to repay both secured and unsecured debts, a debtor may be able to negotiate with creditors to find ways to make their payments affordable without defaulting on the debts they owe.

Loan modification can often be beneficial for creditors, since ensuring that they can continue to receive payments is often preferable to the costs of repossessing and liquidating assets or foreclosing on a home and reselling the property. With the assistance of a skilled attorney, debtors may be able to renegotiate the terms of their loans to reduce interest rates, lower the amount of monthly payments, reduce the principal of a loan, extend the term of a loan, or forgive late fees.

Loan modifications may also be possible in conjunction with bankruptcy, allowing a family to keep property obtained through secured debts while discharging unsecured debts. In fact, filing for bankruptcy will place an automatic stay on foreclosure or collection actions, which can give a family some much-needed "breathing room" while they figure out their options. By determining which loans can be renegotiated and which debts can be discharged, a family can retain ownership of as many assets as possible while finding a solution that will allow them to maintain financial stability.

In a Chapter 7 bankruptcy, debtors may reaffirm secured debts on property that is exempt from liquidation. In these cases, a new contract will be created with the creditor, and the debtor will continue making payments after the bankruptcy is complete. In a Chapter 13 bankruptcy, a debtor may be able to use a "cramdown" to reduce the amount of a loan. This option may be available in cases where the property has decreased in value and is worth less than the amount owed. In these cases, the terms of the loan may be renegotiated to reduce the principal of the loan based on the current value of the property.

Contact a Naperville Creditor Negotiation Attorney

If your family is struggling with debt, McSwain Nagle Giese & Rapp, P.C. can help you understand your options for getting out of this difficult situation. We will work with you to determine your eligibility for Chapter 7 or Chapter 13 bankruptcy, and we will provide you with legal representation when negotiating any necessary loan modifications. To learn more about how we can address your legal and financial needs, contact our office at 630-407-1200 to set up a free consultation. We provide legal help to clients in Naperville, Carol Stream, Wheaton, Glen Ellyn, Warrenville, Glendale Heights, Winfield, and throughout DuPage County, Kendall County, Kane County, Cook County, and Will County.