For those facing the potential loss of a family home, it is likely all that there is on their minds. As a result, they should be familiar with as many of the legal options available to help them as possible and personal bankruptcy protection may be able to offer help in some circumstances and situations.
Chapter 13 reorganization bankruptcy is one personal bankruptcy option that may be able to help those facing the possible loss of their home. Chapter 13 bankruptcy may be able to help in a couple of ways with foreclosure concerns. First, once Chapter 13 bankruptcy protection is filed for, an automatic stay goes into effect that prevents all creditor collection actions. Secondly, the bankruptcy process may allow the filing party to include past due mortgage payments as part of their reorganization plan, providing time for them to become current on payments.
Chapter 13 bankruptcy is a reorganization bankruptcy process that allows struggling consumers with a reliable source of income to reorganize their debts and repay them over time. With the help of the bankruptcy court, those who qualify can develop a repayment plan to repay their debts over a period of time, usually 3 to 5 years, until its completion and a debt discharge is granted.
Foreclosure-related bankruptcy options are highly dependent on timing considerations so it is important that parties facing foreclosure and considering their bankruptcy options to promptly evaluate the resources available to them. Trained guidance can also help throughout the process to help struggling homeowners enjoy debt relief.
