Falling into debt can happen to anyone. Sometimes it takes just one high medical bill or the loss of a job to send people into overwhelming situations. In these tough financial times, many people get behind on mortgage payments that can threaten their home. When people cannot keep up with their payments, some lenders will begin the foreclosure process that can involve repossession of the house.
When your situation is unstable it can be scary, but there are solutions available. Filing for bankruptcy is one that can help in several different ways.
How Can Bankruptcy Help?
Bankruptcy may be a topic you do not want to think about, but in fact, many people find debt and financial relief through this process. Filing for bankruptcy can help you keep your house through an automatic stay. This order forces your creditors to stop collection attempts, including foreclosing on your home. The automatic stay postpones foreclosure and bankruptcy can help you come up with a plan to repay your debts.
Certain types of bankruptcy can help you start a repayment plan to pay off your past due debts so you can keep your house. In some cases, you may be able to eliminate certain or all mortgage payments depending on the type of bankruptcy you file. A Chapter 13 consolidation plan can help catch up house notes. A Chapter 7 case can allow you to surrender a house.
This can seem intimidating and scary, but it offers a chance for a fresh start and the opportunity to keep your home. An experienced bankruptcy attorney can help you get a better understanding of your situation and how bankruptcy may be able to help you save your home.