Stop Foreclosure With Bankruptcy
If you are facing foreclosure, or just behind on a your mortgage- filing for bankruptcy may be able to help you stop the foreclosure sale and save your home. When you file for bankruptcy an automatic stay is imposed preventing creditors from continuing any collection actions. This includes a foreclosure sale. This stay acts as a sort of breathing spell to allow you time to sort your debts.
Using Bankruptcy to Get Current on Your Mortgage
Depending on the chapter you have filed bankruptcy can give you an opportunity to work out a reorganization plan to get current, time to pursue a loan modification, or give you time to catch up. A Chapter 13 Bankruptcy can allow you to reorganize the arrears on your property over a 3 or 5 year plan, while you resume making your mortgage payments and at the same time put your other debts into a payment plan as well. There are a variety of strategies you can explore and having good legal advice can be key to figuring out which options work best for you. At the Law Offices of Sean T. Flynn, PLLC I offer a free consultation and can review your options with you.
Bankruptcy Discharge to Eliminate Debt
While you are resolving your foreclosure issues in bankruptcy, you can also eliminate or discharge your other debts. Doing so may help you have more income to cover bills and expenses, and it may even help you in qualifying for a mortgage loan modification.
Plan for the Best but Prepare for the Worst
If the worst happens, and you are not able to save your home. A bankruptcy may still be helpful. If the property sells for less than is owed there may be a deficiency balance on your credit. Your credit may also have suffered as a result and a bankruptcy discharge may help you eliminate the remaining debt and provide you with a fresh start to rebuild your taking back control of your finances.