The loss of a family home to foreclosure can be a nightmare for a Chattanooga resident. Not only must they struggle to find a new place for their loved ones to live, but they must also contend with the serious financial repercussions that can follow foreclosure proceedings. For individuals who are caught in this difficult situation, help may be available through Chapter 13 bankruptcy.
Chapter 13 bankruptcy is available to individuals who earn income and who, through the reorganization of their debts, can make payments toward the repayment of their obligations. Chapter 13 bankruptcy requires individuals to meet other conditions, and those who read this post and wish to know more about the process are encouraged to seek the support of bankruptcy attorneys.
However, when a person files for bankruptcy, their debts are subject to an automatic stay, which prevents creditors from taking further actions against them. While working through the bankruptcy process, a debtor must continue to make full and timely payments on their mortgage, but they may be able to provide a plan to pay off their delinquent mortgage payments. Therefore, if they are able to repay what they owe on their mortgage, they may be able to stop foreclosure from claiming their home.
It is important that readers know that not every foreclosure will be stopped through bankruptcy and that meeting the requirements of the bankruptcy courts can be a significant task. Readers should be sure that this path is the best possible option for resolving their financial troubles before starting it, and bankruptcy professionals are in a strong position to help those with foreclosure woes to decide if Chapter 13 is right for them.