If you are afraid you will lose your home to foreclosure, you may be considering bankruptcy to avoid that possibility. Chapter 13 bankruptcy may help, but there are some important things to keep in mind. The following are some things you need to know about foreclosure and how bankruptcy might be able to save your home:
How Does Chapter 13 Bankruptcy Help Resolve Foreclosure?
Your foreclosure attorney may suggest that you file for Chapter 13 bankruptcy if you are on the verge of losing your home. The reason for this is that bankruptcy will delay the foreclosure. When you file for bankruptcy, all of your debts enter an automatic stay while the bankruptcy is sorted out. This essentially halts all attempts at collections. However, an automatic stay is not a long period of time and is only temporary. The goal is to use this period of time to figure out a repayment plan so that you can possibly keep your home.
What If You Have More than One Loan on Your Home?
If you have more than one loan on your home and you are facing foreclosure, Chapter 13 bankruptcy can be helpful. This form of bankruptcy is to reorganize your debts in such a way that is more affordable and more manageable. Chapter 13 can help you work with your mortgage lender and develop a strategy that makes your mortgage payments more reasonable for you to afford. This can include spreading out the payments over a longer period of time, offering you a lower interest rate, or working out other options for you to help you. If you have more than one loan on your home, bankruptcy can also help get the two loans combined to make them more manageable.
Is Bankruptcy the Best Option to Stop a Foreclosure on Your Home?
Each person's financial situation is different, so foreclosure may or not work for you. Think about your circumstances and which option is best for you. If you do not think bankruptcy is going to help you with your foreclosure, speak to your attorney for other options that may be available to you. You and your lender may be able to work out a new payment plan without bankruptcy. Always ask out each option that may save your home from foreclosure so you can make an informed decision. If you choose to use bankruptcy as a way to save your home, make sure you fully understand all that comes with it.
Talk to a forclosure attorney for more information.Share
11 November 2022
It can be hard to know what to do to protect yourself legally in the immediate aftermath of a car accident. You’re liable to be disoriented or in shock, you may be injured, and you’re surely worried about your passenger or the other driver. At least, that’s how I felt. The thing is, the things you say and do in the immediate aftermath of an accident may affect a legal case later. Depending on who’s at fault and what the laws are in your state, you may want to sue the other driver for damages, or you may find yourself being sued. My blog is designed to give you tips for a car accident lawsuit, no matter which side you find yourself on.