You’ve been struggling financially for some time. You can manage to make a payment here or there, but something’s always falling behind. In the case that your mortgage payment has been missed several months in a row, you may be facing foreclosure. This can be a very stressful time as you’re attempting to manage your other bills and debts, then to add the worry over the fate of your home.
The good news is, if your other debts have been weighing you down and causing you to miss mortgage payments, there is an option to prevent you from losing your home. Filing for bankruptcy could be just the breather you need to help get back on your feet and get caught up with those late payments. Imagine if the stress from your financial struggle could be alleviated, letting a little ray of hope shine through? Well, I’m certain it can! In over twenty years of experience as a bankruptcy attorney, I’ve seen it happen. Families have been allowed to stay in their homes and recover financially.
So what does bankruptcy have to do with foreclosure? Bankruptcy is a tool made available in the law to relieve people from the overwhelming weight of debt and offer them a fresh start financially. Many people are under the misconception that in filing bankruptcy, all assets are lost. That is not the case, on the contrary, in my experience it’s extremely rare that clients lose assets or property.
The best option to prevent or stop foreclosure would be to file for Chapter 13 bankruptcy. This type of bankruptcy is beneficial in particular with an impending foreclosure because once you’ve filed your case, the mortgage holder cannot proceed with foreclosing. Chapter 13 is also excellent for preventing foreclosure because it’s structured to allow the filer to make past due payments over a determined number of months. This is decided based on income and expenses, to make the payments affordable in the given timeframe. If you are able, you may include other debts in your payment plan, as well.
It is important to note, that if there has already been a sheriff’s sale for your home, bankruptcy cannot stop the foreclosure. However, it may still be a good choice if your remaining debts are unmanageable.
If you think that filing bankruptcy might be the right decision for you, but are not sure, I would be more than happy to help you understand your options in preventing foreclosure. I’ve helped many clients through making decisions about their debt, and I’ve seen many successes. To prevent the loss of your home to foreclosure and to tackle other stressful debts, a helping hand is here – contact me today!