Pelley Law Office LLP
Dallas Office
Plano Office
Sherman Office
214-733-1775
972-608-0335
903-813-4778

No Charge For Initial Consultation ($250 value)

Menu Contact

Over 80 Years Of Combined Experience

View Our Practice Areas

Mortgage payment changes in bankruptcy

Many people in Texas who file for Chapter 13 bankruptcy do so because they would like to be able to keep their home. Because Chapter 13 is a debt repayment plan, it is critical that the homeowner and the bankruptcy trustee be kept up-to-date on any changes in payments to creditors. This is because the majority of the homeowner's income is going toward paying off old debt. Changes can significantly disrupt the homeowner's budget and repayment schedule.

Recently, Wells Fargo settled claims filed by homeowners who were in bankruptcy. These homeowners alleged that Wells Fargo failed to give them the 21-day advance notice that their mortgage payments would change. This notice is required under federal bankruptcy law. Wells Fargo will pay out over $80 million dollars to homeowners affected by this issue.

Homeowners who are in Chapter 13 bankruptcy often have significant concerns about their rights and responsibilities while in a repayment plan. This is understandable; while these people would like a fresh financial start, they also want to meet their obligations. Unfortunately, the debtor may find him or herself dealing with daily creditor harassment, mounting interest and trying to stop foreclosure on his or her home. This can be incredibly stressful and make addressing financial problems even more difficult.

People who are having financial challenges may benefit from speaking with an experienced bankruptcy attorney. Legal counsel can outline the eligibility and other requirements of both Chapter 7 and Chapter 13 while describing the forms of debt relief that might be applicable to a client's particular set of financial circumstances.

No Comments

Leave a comment
Comment Information

Awards & Recognition

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Locations

Plano office
Sherman office
Dallas office

Plano Office
1312 14th Street, Suite 100
Plano, Texas 75074

Phone: 972-608-0335
Map & Directions

Sherman Office
905 North Travis Street
Sherman, Texas 75090

Phone: 903-813-4778
Map & Directions

Dallas Office
6060 North Central Expressway, Suite 602
Dallas, Texas 75206

Phone: 214-733-1775
Map & Directions