Are you presently facing real estate foreclosure due to your high amount of debt? If that’s so, Chapter 7 bankruptcy could actually help you postpone the foreclosure. On top of that, it may be possible to even save your residence and avoid foreclosure entirely under Chapter 13 bankruptcy.
Those people who are far behind in their home loan payments might know their mortgage lender is making plans for a home auction. However, lenders take their time and infrequently do this instantly. So, you might have the time to seek options like loan forbearance or short sales. Yet, if these things fail you may choose to consider bankruptcy.
After you file for Chapter 13 or Chapter 7 bankruptcy, the judge will issue a Order for Relief allowing for an automatic stay. The automatic stay says your creditors must stop trying to get debt from you and if your house is in foreclosure, the course of action will be delayed until the bankruptcy is completed.
With Chapter 13 individual bankruptcy, you pay off the overdue or delinquent payments over the length of a repayment plan you are able to set up. Nevertheless, to qualify you’ll need cash flow to at the very least meet your payment and to pay the repayment plan.
Moreover, Chapter 13 can help you get rid of second or third mortgage payments. This is due to the issue that your home will no longer secure them and they can then be classified as unsecured debt and stripped off.
Bankruptcy can help you postpone or avoid foreclosure. Talk to a highly trained attorney today to see what your best options are concerning bankruptcy and foreclosure.