Loss Mitigation Program assistance in Cherry Hill, NJ
On August 1, 2011, the United States Bankruptcy Court for the District of New Jersey adopted a Loss Mitigation Program. The program functions as an alternative dispute resolution, bringing the debtor and the lender together to negotiate a resolution through open lines of communication to avoid the possibility of foreclosure. Once a debtor files for bankruptcy, this program, with the supervision and assistance of the Bankruptcy court, encourages parties to finalize a feasible and beneficial agreement. Underwood & Micklin has over 20 years of experience helping clients acquire the relief they need through the bankruptcy code. If you face bankruptcy, it is important to contact our firm to discuss your legal matter.
The Loss Mitigation Program
Loss mitigation covers a range of solutions that avert the loss of a debtor’s property and satisfies the lender to the best of the debtor’s ability. Any individual or joint debtor filing for relief under Chapter 7, 11, 12, and 13 of the Bankruptcy Code is eligible to participate, provided they possess real property or cooperative apartment as the principal residence.
Some of the solutions that fall under The Loss Mitigation Program include:
- Loan modification
- Loan refinance
- Short sale
- Surrender of the property in full satisfaction
- Some combination of the above methods
During the process
The debtor must file for Loss Mitigation within 30 days of filing for bankruptcy. At the beginning of the process, parties should discuss the time and method for conducting the loss mitigation sessions, the types of loss mitigation solutions under consideration, and a plan for the exchange of required information prior to the sessions, including a due date for the debtor to complete and provide information and paperwork requested by each creditor.
During the process, either party may request a settlement conference or status conference with the Bankruptcy Court. Either party may also request an extension of the loss mitigation period. The Bankruptcy Court requires status reports to ensure that the process proceeds in a timely manner. If either party does not consent, the Bankruptcy Court may schedule a hearing to assess the feasibility of further loss mitigation sessions. All resolutions or settlements must be approved by the Bankruptcy Court.
Contact Underwood & Micklin
Filing for Loss Mitigation is time-sensitive and document-heavy. It is important to have quality legal support that can help protect your rights and work towards a positive outcome. If you are filing for bankruptcy because of foreclosure, it is important to consult with an attorney to explore the practicality of the Loss Mitigation Program. Underwood & Micklin. has over 20 years of experience helping clients in New Jersey acquire relief through the bankruptcy code. To schedule a consultation, contact Underwood & Micklin. for a consultation today.