Many people think that in order to file bankruptcy you have to have more liabilities than assets. That’s simply not true and there are many times when filing a bankruptcy – particularly a Chapter 13 – will get you out of a financial mess even when you have assets. We recently met with a couple who were over $30,000.00 behind on their mortgage payments. At the same time they owned some valuable property with very little debt. The couple wanted to modify the loan on their home. They were paying a higher interest rate based on previous values. The mortgage company told them to stop making the house payment while they reviewed their paperwork. The mortgage company continued month after month telling the couple that they needed more paperwork and each time they had to re-file everything. Meanwhile, they got further behind on their house payments. When the mortgage company finally reviewed the modification paperwork, they suggested the couple try to pay off some other debt, so the ratio of debt to income would be right. The couple did reduce their debt and the mortgage company said they still were not able to modify their loan. Meanwhile the foreclosure department sent a notice of foreclosure. By now they were 6 months behind in mortgage payments and the bank was going forward with the foreclosure and refusing to accept anything short of full payment. With nowhere left to turn, they sought advice from our firm. We filed a Chapter 13 just days before the foreclosure sale. The couple filed a 100% plan since they had very little unsecured debt and lots of assets. Meaning that their assets are protected, so long as they paid 100% of their unsecured debt over the course of a 60 month plan. So, they will pay off the mortgage arrears over five years and pay the unsecured debt. Once they complete that payments over a 60 month plan, they won’t owe anything except the on-going mortgage. And the foreclosure sale date was stopped.