Filing for bankruptcy may seem like a scary proposition, but it can actually offer relief and a fresh start for many homeowners. If you’re struggling to keep up with your mortgage payments or are facing foreclosure, bankruptcy may be the best option for you.
Here are three benefits of filing for bankruptcy when you own a home:
1. Bankruptcy Can Stop Foreclosure Proceedings
If you’re behind on your mortgage payments, filing for bankruptcy can put a stop to any foreclosure proceedings that may be underway. This will give you some time to catch up on your payments and keep your home.
2. Bankruptcy Can Help You Eliminate Other Debts
Filing for bankruptcy can also help you get rid of other debts, such as credit card debt and medical bills. This will free up some extra money each month that you can use to catch up on your mortgage payments.
3. Bankruptcy Can Give You a Fresh Start
After you’ve completed the bankruptcy process, you’ll be able to start fresh financially. This means you can get a new mortgage and begin rebuilding your credit.
If you’re struggling with your mortgage payments, filing for bankruptcy may be the best option for you. These three benefits can help you keep your home and get back on track financially.
Risks of Bankruptcy for Homeowners
Bankruptcy isn’t for everyone. It can help homeowners, but it shouldn’t be the first thing you do if your financial struggles have just begun.
Remember, bankruptcy can stay on your credit report for up to 10 years, making it difficult to get approved for loans or new lines of credit. It can also lead to higher interest rates and insurance premiums. And if you’re a homeowner, bankruptcy could mean losing your home.
If you’re struggling with debt, there are other options available to you. You can work with a credit counseling service to create a debt management plan, or you could negotiate with your creditors directly to try and lower your payments. There are also government programs available that can help you keep your home if you’re at risk of foreclosure.
Should You File for Bankruptcy?
Ultimately, the decision of whether or not to file for bankruptcy depends on your unique circumstances. However, some general guidelines can help you decide if bankruptcy is right for you.
If you are struggling to keep up with your debts, and have tried other methods of debt relief such as debt consolidation or negotiation with your creditors, but have not been successful, bankruptcy may be right for you.
Bankruptcy can give you a fresh start by wiping out your debts and giving you a chance to rebuild your credit. If you are being sued by your creditors, or are about to be, bankruptcy can stop the lawsuit and give you time to reorganize your finances.
Also remember, if you’re facing foreclosure, bankruptcy can stop these actions and give you time to catch up on your payments. This is the point at which many people turn to bankruptcy. They know foreclosure is coming and they want to retain ownership of their home.
To learn more about how bankruptcy can help homeowners or speak to someone about bankruptcy, contact R. Flay Cabiness, II, P.C. at (912) 417-5041 (Brunswick, GA); (912) 809-2141 (Hazlehurst, GA) or; (912) 324-3176 (Jesup, GA) to schedule a consultation.
