Are you experiencing some serious financial struggles? Are you concerned
about losing your home? There are options available not only to help you
save your home from
repossession, but also to help you eliminate your overwhelming debts so that you can
get a fresh start. One of the best and most common of these options is
Chapter 13 bankruptcy.
Most people shy away from bankruptcy due to misconceptions. They think
of it as a shameful last resort, when the truth is that bankruptcy was
specifically designed to help anyone—even responsible, upstanding
citizens—find relief from unmanageable debts, no matter how it was
accumulated. Do not hesitate to learn more about Chapter 13 bankruptcy
if you are looking to save your home and get a fresh start on your financial health.
Chapter 13 & Foreclosure: The Automatic Stay
The moment you file your petition for Chapter 13 bankruptcy, an “automatic
stay” is put on all
foreclosure, repossession, and debt collection practices. This means that your bank
is not legally allowed to foreclose on your home! It doesn’t end
there, however, because you will still need to agree on a repayment plan
that allows you to keep your home after your repayment period is over
and your debts are discharged.
Without the proper Chapter 13 plan in place, you could still lose your
home to foreclosure after bankruptcy. By agreeing with your mortgage lender
on a plan that allows you to keep your home, however, you could eliminate
your debt and remain in your home.
A Chapter 13 plan is an agreement between you and your lenders, where you
commit to paying a specific amount of money each month for a set period
of time—usually 3 to 5 years—after which your remaining debts
are forgiven and discharged.
You may be able to come to an agreement with your mortgage lender that
allows you to make regular payments for the next few years and then have
any eligible debts discharged after that. While you may not have your
entire mortgage forgiven, you may at least by able to have other debts
eliminated so that you can afford to make your mortgage payments in the
future, allowing you to keep your home and avoid foreclosure!
Learn More from a Bankruptcy Lawyer in Worcester, MA
The Law Offices of Robert W. Kovacs, Jr. can go over your situation with
you and help you decide if Chapter 13 bankruptcy is the best option for
you to stop foreclosure and resolve your debts. Contact us today at (508)
926-8833 to speak with an experienced bankruptcy attorney.