Most homeowners want to do whatever it takes to hang onto their homes if filing bankruptcy becomes a necessity. Foreclosure attorney Gary A.C. Backus of Backus Law Group has more than 15 years of experience helping clients like you navigate the bankruptcy and foreclosure processes. With offices in Montgomery, Clanton, and Selma, Alabama, Attorney Backus will work with you to find the solid solutions you need to retain your home throughout a bankruptcy filing.
Backus Law Group discusses three ways filing bankruptcy can help prevent foreclosure.
- Bankruptcy Issues An Automatic Stay: In legal terms, an automatic stay is an injunction that orders all creditors to stop collection actions right away. If your home has gone into foreclosure and is to be up for sale, an automatic stay can be a lifesaver, and it applies to both chapter 7 and chapter 13 bankruptcy filers. Over the next few months, your foreclosure attorney at Backus Law Group will help you identify the next steps you can take to hold onto your home.
- Chapter 13 Allows You To Catch Up: If you are employed with a steady income, filing bankruptcy under chapter 13 may be the best route to take. chapter 13 restructures your debt into a workable payment plan over several years. You will often be given the option of repaying your late mortgage payments over a five-year span; just be sure you have the income to pay both your current and past payments every month.
- Chapter 7 Can Buy Some Time: Under chapter 7 bankruptcy, which eliminates most of your debt, a foreclosure cannot be permanently stopped. However, many homeowners are able to stay in their homes in the months during a pending bankruptcy and often for a few months after completing the process. This means that you have precious time in your home to save money and make plans to move to a new house. Your bankruptcy attorney at Backus Law Group will help you explore your options with a chapter 7 filing.
Call Backus Law Group at (334) 265-0800 to schedule a consultation with a bankruptcy attorney. You can also visit Attorney Backus online to learn more about his background and other practice areas. By recognizing the ways bankruptcy can prevent or delay the foreclosure process, you can make informed decisions about the best route to take for yourself and your loved ones.