Realizing you are facing foreclosure can leave you paralyzed with fear. Where will you move? How will you ever recover from this?
It can be one of the scariest things you face as a homeowner.
In fact, just the possibility of it might already have you looking for a way to save your home before you’re actually facing it.
This is where bankruptcy comes in.
Chapter 7 is designed to provide people with a way to get out from under their debt. But chapter 13 is designed to provide a pathway for you to keep your property by offering you a repayment plan.
It is important to understand that bankruptcy isn’t a quick fix. It is a legal process, requirements must be met, and there are post-bankruptcy consequences.
What is Foreclosure?
Foreclosure happens when a homeowner falls behind on their mortgage payments. Ultimately – after following the legal process – the lender is then able to sell the home at auction.
Thankfully, this isn’t a process that happens overnight. It typically begins after several payments are missed.
But in the midst of the COVID-19 pandemic, many people are finding themselves unable to make their payments – putting them in this situation.
How Can Bankruptcy Help Me?
Most people’s desire is to stay in their home for the foreseeable or even indefinite future. And with many people working from home during the COVID-19 pandemic, maintain your current residence is likely even more important.
Filing chapter 13 bankruptcy will allow you to propose a repayment plan – typically lasting for five years. Over the length of this plan, you will be able to pay off your late unpaid payments. And assuming you make all required payments, you will be able to avoid foreclosure on your home.
Did you know that chapter 13 bankruptcy can even help with 2nd and 3rd mortgage payments?
Of course, this is a bit more complicated, but it is possible based on certain circumstances.
Is Bankruptcy Right for Me?
The process of deciding if bankruptcy is right for you and which chapter you qualify for can be tricky. For example, with chapter 13 specifically, you will need to meet certain income requirements.
As a bankruptcy attorney, we offer support in this area – giving you an ally from the very beginning.
Whether you are facing foreclosure, scared you might face foreclosure or just want to learn more about bankruptcy options, we’d love to speak with you soon.