Yes, You Can Keep Your Home With Bankruptcy
If you are at risk of foreclosure, Chapter 13 bankruptcy can help you save your home. It seems difficult to believe, but filing for this type of bankruptcy can actually stop foreclosureand may provide the time and protection necessary to repay past-due debts. Getting back on track with other debts will free up money to apply toward past-due mortgage payments, keeping the home out of foreclosure permanently.
When a mortgage company or bank forecloses on a home, it takes back the property. This is done when the mortgage holder fails to comply with the terms outlined in the mortgage agreement. Falling behind on mortgage payments is the most common reason homeowners fall into foreclosure. Foreclosure processes vary from one state to another and issues typically begin when the mortgage payment is past-due by 16 days.
At this initial stage, the mortgage holder can still establish a revised repayment plan. However, many homeowners are trying to deal with the financial issues that caused payments to fall behind or are hoping that financial relief will soon arrive. In the blink of an eye, 90 days pass and the homeowner is facing foreclosure.
There is still foreclosure help at this point and it comes in the form of Chapter 13 bankruptcy. When a mortgage holder petitions for Chapter 12, an automatic stay is entered. This should stop the foreclosure process temporarily, no matter what stage it has reached. While the stay is in place, the individual works with a bankruptcy lawyer to establish a three to five-year repayment plan for creditors. The individual must maintain a steady source of income throughout the repayment period.
The home is not the only secured debt that can be retained during Chapter 13 bankruptcy. Many people file for Chapter 13 in order to keep their cars and other secured debts. The debt reorganization that Chapter 13 offers is all they need to get their finances straight. They quickly begin paying debts covered in the repayment plan and then get themselves current with mortgage payments.
If you are trying to stop foreclosure of your home, contact a bankruptcy lawyer to find out if Chapter 13 bankruptcy will help. Your debt must not exceed the statutory maximum and you must have a regular source of income that is sufficient to make current mortgage payments, comply with a Chapter 13 repayment plan, and pay living expenses. An experienced attorney will determine whether you qualify.
I had no idea bankruptcy would allow me to do this. this sounds like it works a lot better than using some type of modification program.