A Bankruptcy can provide a number of benefits for your home. You should read the benefits listed below as they could be very helpful to you TODAY. Many people believe that by filing a bankruptcy they will automatically lose their home, but that is a myth. A bankruptcy attorney can describe which type of bankruptcy is best for you to protect your home and receive certain financial benefits.
Is Your Home Currently In Foreclosure Or Soon To Be?
If your home is about to be foreclosed upon or is currently in foreclosure, then filing a Chapter 13 bankruptcy can force the mortgage companies to stop foreclosure so long as the foreclosure sale date has not passed. It is important that you contact our office immediately because waiting until a day or two before the foreclosure sale date may be too late to gather the necessary documents we need to file your case. If your mortgage company is about to start foreclosure, then we can file a bankruptcy that will stop any mortgage companies from initiating foreclosure and adding substantial fees so long as we make arrangements to pay for the current mortgage payments and any amount that you are behind (usually under more favorable terms)—see below.
Changing The Terms Of Mortgage Arrears (Amount Behind On Your Mortgage)
If you file a Chapter 13 bankruptcy, your home cannot be taken from you, and you receive the benefit of paying your mortgage arrears (amount that you are past due on your mortgage to include interest and late fees up to the date of filing the bankruptcy) at a 0% interest rate, without any additional late fees added after the bankruptcy has been filed, over a 36 to 60 month time period. Effectively, this makes it more manageable to pay your normal monthly mortgage payments while you get caught up on past due mortgage payments a little at a time.
Can You File Chapter 7 Bankruptcy And Still Keep Your Home?
Yes, by meeting certain requirements and signing a reaffirmation agreement promising to continue paying the mortgage loan after the bankruptcy has been filed. Equally important to understand, you can choose to not keep (surrender) your home, or you can choose to keep one home and not another—speak to your bankruptcy attorney about these options.
Important Disclaimer: The information discussed above and throughout this website should not be relied upon to make any decisions without first speaking to a bankruptcy attorney. There are many intricate rules of law governing bankruptcy with many exceptions to the general rules that could change the advice given by an attorney based on the differing facts in each person’s special set of circumstances. THEREFORE, it is important to discuss any information contained in this website with one of our attorneys before taking any action or refraining from taking any action.