Using Bankruptcy to Avoid Foreclosure
People that have recently found themselves in a rough spot financially may be feeling overwhelmed and stressed out. At times like this it’s tempting to stick your head in the sand and avoid all of your problems. But facing them head on may be the only solution out of the mess you’re in. If you’ve let your mortgage slip for a few months and are looking at a possible foreclosure and mounting late fees and penalties you may want to consider filing bankruptcy to save your home. It sounds counter intuitive but it’s actually a very good option for people who have fallen into debt with few options left.
Filing bankruptcy to save your home from foreclosure is something that should seriously be considered by people who have had a financial setback, perhaps a job loss or unexpected medical bills , that has allowed your debt to get out of control.
Filing bankruptcy will automatically stop your creditors from chasing you for payments, this includes your mortgage servicer. A Chapter 13 bankruptcy is different than a Chapter 7 in that you don’t have your all your debts discharged outright. In a Chapter 13 the past due mortgage payments and any fees will be put into the repayment plan.
If you are facing foreclosure, and feel like you have ran out of options to save your home, you should speak to a bankruptcy attorney right away. Many firms offer free consultations so there is no out of pocket cost to find out whether bankruptcy is the answer to your problems.