Foreclosure threats are often the trigger that alerts a person the seriousness of financial issues. The occasional call or letter about a late payment or a few fees here and there can be ignored, but the threat of losing their home is a wake-up call for many. So, what can you do to stop foreclosure?
The thought of foreclosure is devastating and even if you do everything you can to make things better, the situation can spiral out of control. There are options to help you remain in your home, but many of them are not available to those facing financial struggles. This is why so many homeowners desperate to prevent foreclosure consider Chapter 13 bankruptcy.
Filing for Chapter 13 bankruptcy stops collection efforts, including foreclosure. It does not guarantee you will keep your home, but it gives you time to get your situation organized. This type of bankruptcy is literally a reorganization of your debt. It stops your current landslide and gives you time to get everything under control. Order is something that is often lacking in the finances of a person facing foreclosure and Chapter 13 helps you create order.
In order to file for Chapter 13, you must:
• Have a steady income
• Be willing and able to adhere to a payment plan for several years
• Accept that your debt will not be forgiven (as it is in Chapter 7)
In order to keep your home, you must make all of the agreed upon payments on time. If you fail to do so, the automatic stay created by the bankruptcy is lifted and foreclosure efforts can begin again. Once all of the payments are made under the Chapter 13 repayment plan, you will likely have the option of refinancing your mortgage.
How do you know Chapter 13 is the best option to stop foreclosure?
If you have fallen behind on your mortgage payments or received a foreclosure notice from your bank, it is time to take action. There are options available to improve your financial situation. Contact the Law Offices of Robert M. Geller at 813.254.5696.