Stopping foreclosure proceedings on your home should be a top priority. A bankruptcy attorney can help you keep your home and avoid foreclosure. Owning your own home has always been part of the American dream. Sometimes unforeseen circumstances can lead you to fall behind on mortgage payments, including a medical crisis, loss of employment, divorce or death of a spouse or child. Consulting a qualified bankruptcy lawyer can be the first step to stop foreclosure of your home.
Bankruptcy laws were put into place to help consumers who may have gotten in over their head to structure their debt and get back on their feet. No one wants to lose their home to foreclosure, sometimes events outside their control contribute to situations that lead them close to the edge of the foreclosure precipice. If you are experiencing financial difficulty, you should consider how bankruptcy protections could help you protect your home from foreclosure.
Filing a Chapter 7 bankruptcy temporarily stalls your lender's right to foreclosure, until it gets permission to go forward with the foreclosure proceedings. It will likely be only a temporary fix to the problem. Chapter 7 bankruptcy protections do not allow for the protection of assets owned by the person filing. It calls for the liquidation of almost all assets in order to pay off the debts owed by the person filing.
Chapter 13 bankruptcy is a much more likely option for property owners who are hoping to keep their home. Under a Chapter 13 bankruptcy plan, it is possible to make up missed payments through the repayment plan submitted to the bankruptcy court.
It is important that once you file your bankruptcy case, all payments due on the mortgage be made by the first of each month following your filing date. All of the arrears will be repaid through the Chapter 13 plan approved by the bankruptcy court.
If you face foreclosure, bankruptcy may or may not make sense, and the advice of an experienced bankruptcy attorney will be helpful for you to make the best choice for you and your family.