The thought of losing one’s home in foreclosure is a frightening one. If your lender files a foreclosure complaint against you, you may feel as if you’ve run out of all options. But a foreclosure is not inevitable, and can often be reversed or remedied before you actually lose your house.
One very good option you have to stall or stop the foreclosure process is filing for bankruptcy. When you file for bankruptcy, the court mandates an automatic stay on your debt. This means your creditors must stop all communications with you regarding payment of your bills. The stay prohibits your mortgage company from requesting payments and from proceeding with a foreclosure. An automatic stay, while not permanent, can buy you some time to work out your plan.
Chapter 13 and Foreclosure
The type of bankruptcy you file for can also help you keep your home. If you file for a Chapter 7 bankruptcy, you will have your obligation to pay your mortgage discharged, but you will likely lose your home. If you want to keep you home, and you think you can make regular payments but just cannot afford your past due amount, you may want to file for Chapter 13 bankruptcy.
In a Chapter 13 bankruptcy, you are able to make a payment plan to help you pay off your debts easier. Your past mortgage payments (known as your mortgage arrearage) can be added into the payment plan. Chapter 13 payment plans last from three to as much as five years, so you’re given more time to pay off your mortgage arrearage. What’s more, your payment plan keeps your payments at reasonable amounts, so you aren’t expected to pay huge sums that you can ill afford.
Falling Behind On Your Mortgage Payments? Give Us A Call.
When you’re looking for answers to save your home from foreclosure, an accomplished bankruptcy attorney is your best resource. The Cleveland Bankruptcy Attorneys can look over your case and explain the best scenario for your situation. If you have questions about foreclosure and bankruptcy, call us today at (216) 586-6600 or email us at advice@clevelandbankruptcyattorney.com.