A call came from a client who indicated that his home was headed for sheriff sale in just a few days. He resided with his family and had two jobs but had no reasonable chance of finding new housing quickly. The client had fallen behind during three extraordinarily adverse events: a divorce, the death of a child, and then nearly his own death due to contracting Covid-19. He was barely able to breathe and was in urgent need of a ventilator, but none were available until one suddenly became available, saving his life. Unable to return to work promptly, he continued to fall behind on the mortgage loan. During his call to Brian T. Kernan, the client stated that he was working two jobs with a reasonably good income but was in arrears approximately $75,000 and hadn't made a payment on the loan in a few years. The home had significant equity, and a sale would be a windfall for the bank, posing both a financial loss and personal crisis for the client, who resided with his children and couldn't readily move following a sale.
To stop the impending sale, Brian T. Kernan filed an emergency petition and quickly filed a Chapter 13 plan that sought to repay the arrears 100 percent, yet wasn't foolproof. The client didn't have enough income to repay the arrears in full and was counting on a pending workers' compensation claim and mortgage assistance through a state program. Without the state assistance, the plan likely would fail. At that point, the application for mortgage assistance was denied by the state, putting the Chapter 13 case in significant jeopardy. Kernan crafted an appeal of the denial, and with help from an engaged client, they were able to reach out to the state, reverse the denial, and obtain mortgage assistance for the full amount of the arrears. The Chapter 13 plan was quickly confirmed following this turnaround. Kernan also negotiated down a significant unsecured debt, while a few other debts were avoided completely. The client resumed his regular mortgage payment and began paying a modest sum to the trustee, and he's been able to keep his home -- and his equity -- to the relief of the entire family.