Over the last two years, there have been promises from banks to try to modify the home loans of Americans to make it more affordable for them to remain in their home. The basic idea was that the debtor had to send in some documentation to be reviewed and then they would be advised if they qualified for the loan modification program in a few weeks.
Typically, a couple of months later they would be called back to be advised that they needed to send in some more documentation. Then after sending that documentation in, they were often called back to be advised that the documentation was not received. Then, many people sent it in again only to receive notice that they still needed to send in the same or additional information several weeks later. Often times, people were advised to fall behind on their mortgage. Then, after struggling with the loan modification program they were later advised that they did not qualify and they were set for foreclosure.
At that point, the best way to stop the foreclosure most of the time is to file a Chapter 13 bankruptcy and pay back the arrearages through the Chapter 13 Plan. Most people qualify to discharge all of their credit card debt in the Chapter 13 and many people can reduce their monthly payments on their car through the bankruptcy.