Facing a the possible foreclosure of a home can be a scary thing for home owners, especially if they have no idea how they will continue to put a roof over their family’s head. As they consider their options for moving forward, many of these home owners begin to wonder if there is anything that they can do to save the home. It’s important for these home owners to know that, in some cases, it is possible to keep home foreclosures at bay by filing a chapter 13 bankruptcy petition. For those who are not familiar with how it works, here’s how chapter 13 bankruptcy can help and why getting assistance from an attorney before filing is a debtor’s best bet for success.
How Chapter 13 Bankruptcy Can Help
When it comes to stopping home foreclosures, filing for chapter 13 bankruptcy is one of the most common methods used. Here’s a brief overview of why it often works so well:
? As soon as the bankruptcy petition is filed, the home owner is granted an automatic stay from the bankruptcy court. This means that, for the time being, creditors must cease all efforts to collect any payment on the debt. This automatic stay includes foreclosure proceedings.
? Chapter 13 bankruptcy allows debtors a few years to catch up on their missed payments. This means that they’ll get a chance to make arrangements to bring their mortgage loans current and avoid foreclosure.
Why Hiring an Attorney for Help Is Necessary
If a debtor plans to use chapter 13 bankruptcy to stop foreclosure, speaking with an attorney first is a good idea for the following reasons:
? Chapter 13 petitions require a means test to ensure that the debtor has enough money to honour the debt repayment plan. If they do not, then they may have to go a different route.
? Home owners need to file their petitions before the lender files the foreclosure notice. A bankruptcy attorney will help make sure that the petition is filed immediately so that the automatic stay can be granted before a home sale date is scheduled.
With the help of the right debt relief attorney, home owners may be able to come up with a viable bankruptcy plan that will allow them to keep their homes while they catch up on missed mortgage payments. Log on to website to discover additional information about how using bankruptcy to avoid foreclosure can help ease the minds of financially burdened home owners.
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