Life can change in an instant. A medical emergency can take away income and create financial stress. That is exactly what happened to a woman from Deptford. Her husband became very sick and had to leave his job. After several months, he finally qualified for Social Security Disability, but by then they were already in serious trouble with their mortgage.

Every Case is Unique

This woman had filed a Chapter 13 before, but the case was dismissed because of her husband’s health problems. Courts can be strict when a case is dismissed within a year. Still, judges also understand real-life hardships, especially when medical issues are involved.

If someone cannot explain why a past case failed, judges are unlikely to allow another chance. But when there are clear changes—like receiving income through Social Security Disability—judges often give debtors another opportunity.

Another Chance to Save the Home

If this couple can now make trustee and mortgage payments or qualify for a loan modification, they may still be able to save their home. Loan modifications are never guaranteed, but they can help reduce payments and stop foreclosure.

However, if they cannot realistically afford the house and there is no equity, Chapter 7 may be the better option. Chapter 7 allows debtors to walk away from debt and get a fresh start, but they will eventually lose the home.

Explore Your Options

Bankruptcy is designed to help honest people facing financial problems beyond their control. If you are struggling, you don’t have to face it alone.

📞 Contact TAIEBLAW at 856-235-4994 or visit TAIEBLAW.COM to learn your options.

Steven N. Taieb, Esq. has been a South Jersey Bankruptcy Attorney for more than 34 years. He is board certified in consumer bankruptcy law by The American Board of Certification, accredited by the American Bar Association.