Keeping and protecting a family home can be one of the most stressful and important concerns a struggling homeowner faces. One option to consider that might be able to help is chapter 13 bankruptcy protection. There are different personal bankruptcy protection options that can help struggling consumers and homeowners in different situations and it is beneficial to be familiar with all of them.
Chapter 13 bankruptcy protection is a personal bankruptcy protection option that can help struggling consumers reorganize their debt and repay it over a more manageable period of time according to manageable payments and a repayment plan worked out with the bankruptcy court. It is best for struggling consumers who have a reliable source of income they can repay their debts with according to what is typically a 3 to 5-year repayment period depending on their income and the repayment plan itself.
Chapter 13 bankruptcy first works by places an automatic stay on all creditor collection actions so creditors cannot pursue any collection actions during the bankruptcy process. This can immediately provide some breathing room for struggling consumers and homeowners. Next, it may be possible for the homeowner to include what they owe in the repayment plan to be able to get caught up in this way and protect the home from the foreclosure process.
It is important for struggling homeowners not to ignore foreclosure concerns and to act promptly to see what options may be available to help them and if Chapter 13 bankruptcy is an option that can help. Personal bankruptcy protections options are valuable legal resources that may be able to help that both struggling homeowners and consumers should understand.