Bankruptcy Stops Foreclosures, Saves Homes —
Being served with a foreclosure action is frightening; however, you may be able to save your home by filing a bankruptcy action. Once a homeowner gets behind on his or her mortgage payments because of a lost job, medical emergency, divorce, or the loss of a spouse, we know how difficult it is to catch up the payments. Most mortgage companies charge large late fees and refuse to accept any amount other than the full amount to catch up on the entire past due balance. Once the mortgage company turns the account over to an attorney to pursue foreclosure, the balance owed increases substantially due to the attorney fees and costs that are added to the outstanding balance.
Travis J. Richards has helped hundreds of clients save their homes from foreclosure by filing a bankruptcy case. Filing a bankruptcy case immediately stops the mortgage lender from continuing or starting a foreclosure action. Filing a bankruptcy case also allows the debtor to either remain in the home or have some additional time to find other living arrangements.
Foreclosure and Chapter 13 Bankruptcy
When a homeowner files a Chapter 13 bankruptcy case, he or she can catch up on the past due mortgage payments through the Chapter 13 plan to save the home from foreclosure. The debtor’s bankruptcy plan will include payments to the mortgage company to catch up the arrearage. The debtor must resume making regular mortgage payments outside of the bankruptcy plan. If the debtor fails to make the mortgage payments on time every month, the mortgage lender can request that the bankruptcy court allow it to resume the foreclosure action.
Chapter 13 bankruptcy is an affordable solution to foreclosure that allows the homeowner to keep their home while reorganizing their other debts into a manageable monthly payment.
Foreclosure and Chapter 7 Bankruptcy
While a Chapter 7 bankruptcy case will stop a foreclosure sale, it will not keep the debtor from losing his or her home unless the debtor can catch up on the past due payments. However, a debtor can gain a few extra months to make other living arrangements because the filing of a bankruptcy case, even a Chapter 7 case, will stay the foreclosure action until the bankruptcy case is closed or the court grants the lender’s motion to continue with the foreclosure action.
One benefit of filing a Chapter 7 bankruptcy case even though you may surrender the home is that the bankruptcy case will discharge any deficiency balance that may remain after the foreclosure sale. This gives the debtor a fresh start so that he or she can begin to rebuild their credit and work toward owning another home in the future.
Schedule Your Free Consultation with a Mount Holly Bankruptcy Attorney
Saving your home is only one of the advantages of filing a bankruptcy case. There are many other ways bankruptcy can help you recover from a financial crisis.
Travis J. Richards and his team can help you overcome your financial problems. We focus on meeting our clients’ needs through bankruptcy, debt consolidation, and credit repair services.
Just call 609-267-5297 to speak with a Mount Holly foreclosures attorney today, or use our simple online contact form to schedule your free consultation. We offer consultations during normal business hours, on weekends, and after-hours as well.