Principal Reductions Via Chapter 13 Bankruptcy
I’m pleased to report that a bankruptcy client of Stopa Law Firm received a mortgage modification with a $350,000 principal reduction during a mediation with a bank earlier today. The mediation was part and parcel of the Chapter 13 bankruptcy the homeowner had filed with the firm in the Middle District of Florida, Tampa Division, Bankruptcy Court.
While mediations are available in the state court system, the obligation to mediate in “good faith” is something the federal courts take very seriously. The banks know this. The banks are leery of the federal courts’ ability to impose significant sanctions for failing to mediate in good faith. As a result, pursuing a mortgage modification through a Chapter 13 bankruptcy is often the best way to obtain a mortgage modification and, sometimes, a principal reduction.
Congratulations to Kenny Case, the attorney who attended the mediation for the firm while I was in court handling other matters.
Back-patting aside, let this be a good reminder that there are solutions for Florida homeowners to keep their homes through the bankruptcy court system.
Mark Stopawww.stayinmyhome.com
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