Legal Question in Bankruptcy in Wisconsin

You should consider chapter 13 bankruptcy, which you can still file following a chapter 7, which can both reinstate your mortgage and protect your cosigner which is the only "sure thing" in terms of stopping a foreclosure. That would require you to resume payments, however, so chapter 13 is not workable if you cannot afford to resume payments which are at the required amount, plus an additional monthly amount sufficient to pay off the arrearage over five years. While you should apply for a loan modification, few of those involve reductions of mortgage principle or payments. Rather, the bank is first likely to try and collect from your cosigner unless you can sustain a chapter 13 and protect him or her. If you have a cosigner, banks rarely approve modification requests unless the cosigner also fills out the hardship paperwork and has also lost his or her source of income. Another option is attempting a short sale, which might improve your odds of getting a new mortgage some day if you have sufficient income. Please do not assume that I am your attorney because of my response here. Call my office in Racine (262-633-3090 or email [email protected]) for clarifications, but short of such additional arrangements, I will not be taking any action on your case. See me on the web at www.jayknixonlaw.com, or view over fifteen years of my past answers at http://www.lawguru.com/answers/search/attorney/jknixon, as well as past AVVO answers at http://www.avvo.com/attorneys/53401-wi-jay-nixon-1529181/answers.html?sort=recency. Answers may contain attorney advertising materials.