Stop Foreclosure on Your Home
Filing Chapter 13 Bankruptcy Can Save Your Home
When you get behind on your home mortgage panic sets in, where do you turn to save your home. There are many options available to help you prevent foreclosure on your home, but which option is best in your situation? Obviously if you could just have more time, or earn more money then you could get back on track with your mortgage payments. But this is a very difficult thing to do. Although filing bankruptcy chapter 13 would provide complete and immediate relief, most people take the first step of contacting their mortgage company or bank, and sometimes this helps, most of the time it does not. Of course many mortgage company’s will offer to allow you to apply for a mortgage modification. Mortgage modification will provide you temporary relief from the high mortgage payments, but usually ends up being a non-option.
Save home from foreclosure – file chapter 13 bankruptcy
Of course there are limitations to the ability to file chapter 13, but if you qualify you get immediate relief and stop home foreclosure cold. What does that mean? Well when filing any form of bankruptcy – chapter 7 or chapter 13- an automatic stay is effective immediately upon filing your bankruptcy petition. Even if your home is going to be sold at a foreclosure sale the next day, your bankruptcy lawyer can make sure the [pullquote align=”left|center|right” textalign=”left|center|right” width=”30%”]foreclosure is halted [/pullquote]as soon as you file by sending the mortgage company a notice of automatic stay. Thus chapter 13 is the surest way to stop the foreclosure process.
Get Your Home Mortgage Back on Track in Chapter 13
The primary feature of Chapter 13 bankruptcy is that you are allowed to pay your debts, including mortgage arrears based upon your chapter 13 plan. In other words when you file chapter 13 to save your home from foreclosure you and your lawyer for bankruptcy would present a plan to repay your mortgage arrears over the life of the chapter 13 plan which is usually five years. Unlike unsecured debt, you would still have to pay interest on the arrears, but this can sometimes be reduced. Under your chapter 13 plan you would be paying your regular monthly mortgage payment, a smaller monthly payment towards your mortgage arrears and if you have unsecured debt like credit cards you would be paying all or a portion of of that debt.
Immediately consult a Chapter 13 bankruptcy lawyer or attorney
In order to get the benefit of chapter 13 bankruptcy you need to seek the advice and counsel of an experienced lawyer for bankruptcy. Bankruptcy is very complicated and not all people qualify for bankruptcy. Even if you qualify to file chapter 13, it may not be a feasible option under your circumstances, or there may be tough choices to be made- for instance you can save your home but not your car. These are issues that need to be reviewed by and discussed with a bankruptcy attorney.