As one of the highest ticket items in most people’s budget, it can be easy to fall behind on a mortgage payment.
In some cases, a lender or mortgage company might be willing to work with you on a deal. This may include a short sale or loan modification.
But unfortunately, more often than not, this isn’t the case.
In most cases, the lender or mortgage company will begin the foreclosure process as laid out in the mortgage contract. This process involves the creditor repossessing the home and selling it.
Are you someone who has found yourself in this situation and now you’re hastily trying to figure out what to do?
Filing bankruptcy chapter 7 or chapter 13 might be your relief.
When you took out a mortgage to buy your home, you assumed the responsibility of repaying that debt. And if you are unable to make your mortgage payment, you are not following through on that obligation.
However, filing bankrupt could offer you the opportunity you need to catch up. Look at it as temporary relief, because it will still take time and work.
What happens to my property after I file for bankruptcy?
Upon filing for bankruptcy, the court automatically issues an Order for Relief. An Order for Relief grants what it called an “automatic stay.” An automatic stay requires your creditors to stop collection attempts. Period.
Therefore, if a foreclosure is ordered on your home, it will be postponed, by law. It is postponed until the bankruptcy filing is finalized, which generally takes three to four months.
What happens beyond this will depend on the chapter of bankruptcy you file.
Filing for chapter 13 will allow you to set up a repayment plan to pay off the past due payments. To continue to avoid foreclosure, you will need to continue to make all required payments for the length of the repayment plan.
If you file for chapter 7, all the debt secured by the home, including mortgages and home equity loans are forgiven. However, the relationship between chapter 7 bankruptcy and foreclosure is complex and comes with cautionary notes.
We recommend speaking with an experienced Atlanta bankruptcy attorney to learn more about both options and how they would impact your scenario.
Finding the right bankruptcy attorney near me.
The first step to finding debt relief through filing bankrupt is finding the right Atlanta bankruptcy lawyer to handle your case.
At The Wright Law Alliance, we are committed to providing each client with exceptional service, compassion and respect.
We are here to help you.
Schedule a complimentary 30-minute consultation with us today to learn more.