Understanding How Bankruptcy Can Help With Foreclosure
Getting behind on your mortgage is one of the most stressful situations that a person can face. Wondering where you and your family will live is something no one should have to experience.
Filing for bankruptcy can stop a foreclosure. Bankruptcy can also be used to simply delay a foreclosure in situations in which you don’t want to keep the home. Additionally, bankruptcy can get rid of second and third mortgages and home equity lines of credit – which also puts a lot more money back into your pocket.
Foreclosure And Chapter 13 Bankruptcy
Chapter 13 bankruptcy is typically best for people who want to keep their homes but just need some time to get caught up on mortgage payments. When your lawyer files Chapter 13 bankruptcy, it immediately stops your lender’s foreclosure actions. Then your lawyer negotiates a manageable payment plan for you with the lender, which is approved by the court.
As long as you continue to make your repayment plan payments on time, the mortgage company can take no foreclosure or collection action against you. This allows you to get caught up on your past-due mortgage payments over time.
What Chapter 7 Bankruptcy Means For You
Having your bankruptcy lawyer file Chapter 7 does not permanently prevent foreclosure, but it can delay foreclosure for two to four months. So, if you are thinking about moving out eventually, Chapter 7 can buy you a few months of extra time. And because you are not making mortgage payments during this time, you can save up money for a down payment or security deposit and have time to find a new place to live.
Have Questions? Call Today.
The best way to prevent or delay a foreclosure is to talk to an experienced bankruptcy lawyer immediately. I have helped hundreds of clients save their homes and get out from under the stress and worry of being behind on their mortgage payments. Call Danny Kallabat, P.C., today for a free consultation at 248-357-3000. You may also email me through this website to schedule a free consultation.
Danny Kallabat, P.C., is a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.