Facing foreclosure may mean you need to consider alternate ways to rid yourself of debt. Simply ignoring the notices and phone calls does not make them go away.
If you have a family, you may not want to leave the family home. How can you get yourself out of financial trouble and keep your house? The first step in freeing up the cash to pay the bills may include filing bankruptcy. Chapter 13 may prove beneficial to your health and wellbeing sooner than you think.
What does Chapter 13 bankruptcy do?
Receiving warnings and notices about impending foreclosure proceedings does not mean you will lose your home. It does mean that you need to get back on a firm financial path. Chapter 13 bankruptcy does not seize assets or force you to leave your home. Instead, it restructures your debt and allows you to pay outstanding debts over time. Depending on your situation, you may come out of the stranglehold of debt in three to five years.
How can Chapter 13 help stop foreclosure?
Bankruptcy court considers your home an outstanding debt. Filing Chapter 13 puts a stop to all collection activities, including foreclosure, until the court deems the bankruptcy over. Since you plan on keeping your home, the past due money and fees you owe will become part of the repayment plan worked out with the court and creditors. Once you complete the bankruptcy terms to the court’s satisfaction, you may resume paying your mortgage under the original terms.
Chapter 13 bankruptcy allows you the opportunity to recover from near financial ruin. Learn more about the qualifications and decide if it is a good fit for your financial situation.