The possibility of looming foreclosure may be one of the concerns that weights most highly on the minds of those struggling with overwhelming amounts of debt. It is important for anyone who finds themselves in that situation to be familiar with the different options that might help, including bankruptcy.
Foreclosure is a possibility when a homeowner has fallen behind on their mortgage payments. The foreclosure process is a lengthy process and typically does not begin until the homeowner is two to three months behind on their mortgage payments. There are different options that may be able to help and bankruptcy is one of them.
To being with, the automatic stay that goes into effect when a bankruptcy filing is made prevents further creditor collection actions while the bankruptcy process proceeds. In some circumstances, the automatic stay may not provide protections so it is important for struggling homeowners to be familiar with those circumstances.
Chapter 13 bankruptcy options may also be able to help with foreclosure. Chapter 13 bankruptcy allows the filing party to reorganize their debts and repay them over time. It may help struggling homeowners get caught up on their mortgage payments by allowing the amount that is owed to be included in the repayment plan and prevent the family from losing their family home to foreclosure.
Bankruptcy options can help individuals struggling to make home and other payments and can help them enjoy debt relief and a fresh financial start. There are valuable legal protections for consumers facing the stress and strain of debt to be familiar with.