Can filing for Chapter 13 bankruptcy help me to save my home from foreclosure?
Receiving notice of an impending foreclosure is one of the most frightening things a homeowner can experience. For most families, your home is one of your greatest assets, as well as a beloved sanctuary. Losing your home would be devastating. If loan modification has failed and a short sale is not the answer, you may find relief in a Chapter 13 bankruptcy. With a Chapter 13 bankruptcy, you can halt the foreclosure process and enter into a repayment plan that includes late mortgage payments. Once you have completed the repayment plan, you will be current on the mortgage and the lender cannot re-initiate foreclosure.
Stopping Foreclosure Through Chapter 13 Bankruptcy
When you file for Chapter 13 bankruptcy, federal law prevents all creditors from continuing efforts to collect from you, including foreclosure proceedings. If you have received notice of foreclosure, consult with our Ohio bankruptcy attorneys as soon as possible to find out more information about halting the foreclosure proceedings with Chapter 13 filings.
Saving Your Home Through Chapter 13 Bankruptcy
There is much confusion about bankruptcy and maintaining your home. In a Chapter 7 bankruptcy, you may end up losing your home. While the initial act of filing for Chapter 7 bankruptcy will stop the foreclosure, there is a good possibility that the home will eventually still be foreclosed at the time of liquidation of your assets. However, there are ways to file for Chapter 7 and eliminate your unsecured debt while still keeping your home, depending on your financial circumstances.
For the majority of people, Chapter 13 offers the most effective method for escaping from crushing debt while still staying in their homes. During a Chapter 13 bankruptcy, the debtor will enter into a three or five-year repayment plan developed after consultation with his or her attorney. The court and creditors must approve the plan, which will include any defaulted mortgage payments. If the homeowner successfully completes repayment, the mortgage will continue as scheduled and all equity in the home is preserved.
Filing for bankruptcy is an important decision that should only be done with the help of an experienced law firm. Contact our skilled personal bankruptcy attorneys at Miami Valley Bankruptcy today for a free initial consultation.