Did you know you can avoid or delay foreclosure by working with an attorney?
Filing bankruptcy can be scary. It sounds like throwing in the towel. Yet no matter how the economy is doing, no matter if you’re employed or unemployed, and no matter the size of your family, things happen. That may be a simple way of putting it, but when a $10,000 medical bill comes in, you fall behind on mortgage payments, or you lose your job, there is nothing easy about it.
What are your options if you fall behind in bills or lose your job?
Depending on your situation, you may be eligible to file bankruptcy.
Why bankruptcy? Technically, Chapter 7 bankruptcy can eliminate the majority of your debts. But this guide isn’t about eliminating debts, but helping you save your home from foreclosure.
You can, in fact, hire a bankruptcy attorney to save your home from foreclosure. If the lender on your home offers no way out, if they make it clear they won’t or can’t work with you, you might have to file for Chapter 13 bankruptcy. Chapter 13 bankruptcy includes in it the “automatic stay,” whereby you can save your home from foreclosure. This may sound too good to be true, and there is some fine print.
If you wait too long to file for Chapter 13 bankruptcy and hiring an attorney, technically the lender can file for a motion to lift the stay. Meaning: the automatic stay will be invalid. Also, they can appeal directly to the court to lift the motion at some point during the Chapter 13 bankruptcy. In both cases, you still have a very good chance of saving your home, especially if you have an experienced bankruptcy attorney.
What is Chapter 13 bankruptcy?
Chapter 13 bankruptcy is different than the more common Chapter 7 bankruptcy. Usually, filers have more in the way of assets. If you file for Chapter 13 bankruptcy, as long as you stay current on bills and the debt repayment plan, you can keep all of your assets.
While Chapter 7 is a liquidation where assets are sold to pay back debtors and your debts are discharged, Chapter 13 bankruptcy buys you time to pay back assets and can delay foreclosure proceeding — effectively saving your home.
How do you file Chapter 13 bankruptcy?
Chapter 13 bankruptcy can be very simple, especially if you hire an experienced bankruptcy attorney. You will have to appear before court in a Chapter 13 bankruptcy, but in a limited way. Prior to the bankruptcy, you will have to take credit counseling with an approved agency. Once this is done, you pay the fee of $274 and file forms.
Hiring an Attorney
Before even thinking of all the advantages of saving your home from foreclosure via Chapter 13 bankruptcy, you should query experienced bankruptcy attorneys in your area. This is simply a must. And when you hire one, make sure they are affordable, experienced, and not overloaded with clients.