Chapter 13 and Home Affordability Modification Program

Although the HAMP program is not formally affiliated with Chapter 13 or bankruptcy, the two are complimentary to one another for several reasons.  One of the main reasons is that filing for Chapter 13 can make payments to all creditors affordable which can help ensure that a debtor has the funds to cover his/her new lowered mortgage payments under the HAMP program. 

A HAMP can be filed as an exhibit under a Chapter 13 repayment plan.  This allows debtor's counsel to work with HAMP providers to come to a resolution.  This also allows the debtor to not bite off more than he/she can chew, as the trustee considers all of the payments including the HAMP under the debtor's repayment plan. Applying for HAMP in conjunction with filing for Chapter 13 does not alter the HAMP guidelines, the same guidelines apply.  However, a person that is eligible to file for Chapter 13 is more than likely eligible for HAMP and vice versa.

For more information about applying for HAMP and/or Chapter 13 contact bankruptcy law firm Fears | Nachawati.