For many people, filing for bankruptcy is a last resort – something they would consider if no other option were available. The truth is bankruptcy is a tool that can be useful helping you with financial challenges, especially foreclosure. You don’t need to wait until you are desperate to consider how bankruptcy might help you.
One of the greatest benefits of bankruptcy is the way in which filing affects foreclosure. If you are being threatened with foreclosure notices, now is a good time to contact an experienced bankruptcy attorney who can help you review your options and make the best choice for your situation.
When Should You Consider Bankruptcy
Any time you are facing financial challenges that seem insurmountable, bankruptcy could be an option. However, if you have received a “Notice of Default” from your mortgage lender, you are in a serious situation and filing for bankruptcy might be your only option. You need to act fast. This notice indicates the lender has begun foreclosure proceedings and you are at risk for losing your home.
Filing for Chapter 7 Bankruptcy
If you know a bit about bankruptcy, Chapter 7 might not be your first instinct when it comes to stopping foreclosure. Though Chapter 7 does not stop foreclosure permanently, it does give you time. Filing creates an automatic stay, which means all creditors and debt collectors, including your mortgage lender, must stop any action against you. This frees up money you might be putting toward other debts and allows you to pay that money to your mortgage lender.
Chapter 7 is not the best option for every homeowner, but depending on your debts and your income, it might help you prevent foreclosure.
Filing for Chapter 13 Bankruptcy
More commonly, Chapter 13 bankruptcy is used to stop foreclosure. Handled properly, Chapter 13 creates a payment plan that enables you to catch up on mortgage payments within a set period of time. You hand control of your finances over to the bankruptcy court, but this enables you to negotiate the money you owe your mortgage lender and continue living in your home as you work to remedy the overdue loan.
Not everyone qualifies for bankruptcy. It’s important to work with an attorney who understands the laws and can explain your options clearly and honestly. It’s also important to remember foreclosure laws vary from state to state. To read about the laws in your state, view RealityTrac.
Are you facing foreclosure? Are you wondering if filing for bankruptcy could allow you to continue living in your home? Contact R. Flay Cabiness, II, P.C. at (912) 554-3774 (Brunswick, GA); (912) 375-5620 (Hazlehurst, GA) or; (912)-554-3756 (Jesup, GA) to schedule a consultation or to discuss the details of your situation.
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