Many homeowners across North Texas and the rest of the nation have attempted to get a loan modification on their home through the "Obama Plan" over the last several years. Unfortunately, many times the modification is denied. Even more frustrating about the modification program is the fact that the mortgagee bank often does not seem to know the information that is being communicated to the homeowner from another of its employees only weeks or sometimes hours prior to a different message being received by the homeowner.
If a home modification attempt fails or is failing it is typically a good idea to seek your options under the Bankruptcy Code. A Chapter 13 bankruptcy gives you five years to get caught up on the loan. Plus, it typically allows you to receive much needed relief from credit card debt at the same time. Most people have the misconception that you can only receive relief from unsecured debt (credit card debt) in a Chapter 7. That is not true.