When someone falls behind on their monthly payments for rent or other bills, catching up can seem impossible. Many efforts that someone takes to catch up can look to be in vain, especially when foreclosure becomes a threat to their home. Chapter 13 bankruptcy offers a solution that can allow someone to keep their home.
Hundreds of thousands of people lost their homes to foreclosure each year. Chapter 13 bankruptcy has the potential to stop the foreclosure process in its tracks, but only if the bankruptcy applicant takes the right steps.
What does Chapter 13 bankruptcy do for a home?
Chapter 13 bankruptcy has the potential to stop the foreclosure process, and even remedy any delinquent mortgage payments. The decision to file for bankruptcy does not eliminate any future mortgage payments during the term of the plan, but it can reschedule the payments. If they receive approval, an applicant of Chapter 13 bankruptcy will be able to manage their debts over a three-year or five-year term.
How do I protect my home?
The key to protecting a home from foreclosure is acting fast. An automatic stay goes into place as soon as a person files for chapter 13. If the mortgage company finishes the sale through foreclosure before the applicant files for a petition, the debtor can still lose their home. Because the timing of this application is critical to keeping a home, a debtor cannot afford to make mistakes along the way.
Get things done right the first time
A bankruptcy attorney can offer the guidance and experience a debtor needs to defend their mortgage. A lawyer can be the difference in keeping a home or losing it to a failed application attempt. Do not make the mistake of filing for bankruptcy alone, and seek the leadership of an experienced attorney.