DENVER, CO--(Marketwire - October 28, 2010) - Colorado bankruptcy attorney Michael Wink, Wink & Wink PC, reported on the Tom Martino Show that thousands of Colorado homeowners could benefit from filing bankruptcy. According to Wink, nearly 25% of Colorado homeowners are "underwater," and bankruptcy can help these homeowners reduce the amount they owe on their homes.
Wink reported that homeowners may benefit from bankruptcy because filing can stop foreclosure proceedings, cure mortgage arrears, and even strip away junior home liens like second mortgages or home equity lines of credit.
"Bankruptcy can get homeowners a permanent mortgage modification," said Wink. "It is the unsung hero for people struggling with mortgage debt."
For homeowners who may be considering loan modification instead of bankruptcy, consumer advocate Tom Martino had a clear message: "[loan] modifications, forget it folks. I mean, that's a scam."
During the interview, Wink also noted that bankruptcy is a smart choice for homeowners currently facing foreclosure as it may protect them from future liability judgments.
"When a home is sold in a short sale or foreclosure, it is sold for less than is owed on the home and the homeowner generally remains liable for the difference between the sale price and the amount he or she owed on the home. Lenders can then sue the borrower up to six years after the foreclosure or short sale and get a deficiency judgment for this amount, which can lead to garnishment of 25% of the consumer's wages," says Wink. "However, if a consumer files bankruptcy, they are generally protected from future judgments and wage garnishment."
Martino summed up the report by saying "If you're a homeowner and you want to keep your home, there's a way to do that in Chapter 13 (bankruptcy)... or if you want to get rid of the house and walk away there's a way to do that with a Chapter 7 (bankruptcy)... "
During the interview, Wink stressed that anyone struggling with mortgage debt should take the time to learn about their bankruptcy rights as homeowners.
About Wink & Wink, PC
Wink & Wink, PC is a small, family operated law firm with an emphasis on counseling individuals and small businesses in bankruptcy matters. The firm is unique in that they create a personal connection with every client ensuring every decision is made with confidence. Michael Wink, Esq. and Gailyn Wink, Esq. specialize in Chapter 7 and Chapter 13 bankruptcies and their combined experience covers the law as well as finance and business. Based in Denver, Colorado, Wink & Wink offers free consultations to individuals and companies throughout Colorado. For more information, visit www.winkandwink.com.