For many people facing foreclosure, being in over your head in debt is about more than just money. You may also be worried about your personal future or that of your family. The good news is that there is help available for homeowners who have found themselves in this situation. Here are a few ways that Chapter 13 bankruptcy can help you stay in your home and get back on the right financial track:
Step 1: The Automatic Stay
When it comes to foreclosure, it’s important that you don’t wait too long in order to take action. One of the best things about filing a Chapter 13 bankruptcy petition is that you will be granted an automatic stay by the bankruptcy court. This means that all collection efforts -; including those from your mortgage company -; must stop immediately. Consequently, the current foreclosure process will have to be put on hold while you go through the bankruptcy process.
Step 2: The Repayment Plan
For many people, making their mortgage payments wouldn’t be a problem if they had a little breathing room to catch up with late payments. During the bankruptcy process, you will have to come up with a loan repayment plan based on your current income and budget. A Chapter 13 bankruptcy Attorney can be of great help in this situation, as they’ll be able to assist you in coming up with a realistic repayment target that will be best for you in the long run.
Step 3: Lien Stripping
If you’ve taken out more than one mortgage on your home, you may be worried about your ability to repay those loans after bankruptcy. Fortunately, many homeowners in this situation qualify for lien stripping. In order for this to be a viable solution, your primary mortgage loan must be greater than the value of your home. Because there is no equity in your home to secure that second mortgage, it can be removed. If you can’t afford to pay it back, you won’t have to under the terms of your bankruptcy.
Working with a Chapter 13 bankruptcy Attorney is key if you want to make sure things get done right the first time. If you’re trying to save your home, it’s time to pay a visit to Shinbaum & Campbell Attorneys at Law. Let their expertise work on your behalf to bring you the financial freedom and peace of mind you’ve been seeking.